Both Social Security and Medicare Are Pay-As-You-Go Programs

question 220

Multiple Choice

Both Social Security and Medicare are pay-as-you-go programs.This means that:

• A) current taxpayers fund the benefits that are currently paid out.
• B) future beneficiaries contribute to a pool of funds today that will be used to pay for their benefits in the future.
• C) the government pays for the benefits as the beneficiaries go into the system.
• D) beneficiaries pay for the programs as they go into them.

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Definitions:

Prices Paid

The amount of money expended by consumers or businesses to purchase goods or services.

Acreage Allotments

Regulations or programs that set limits on the amount of land that can be used for the cultivation of certain crops, often to control supply and stabilize market prices.

Price-Support Program

Government interventions designed to maintain the market price of a good at a certain level.

Particular Crop

A specific type of crop grown for agricultural production, often defined by its use or species.