Which of the Following Are Reasons Why Social Security Is

question 23

Multiple Choice

Which of the following are reasons why Social Security is compulsory?

• A)A pay-as-you-go system needs new contributors to maintain solvency.
• B)A pay-as-you go system cannot let older individuals opt out of benefits.
• C)The adverse selection problem.
• D)all of the above
• E)a and c

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Definitions:

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated, potentially distorting the results of the model.

Variables

Elements, characteristics, or features that can assume different values in a study or experiment, influencing the outcomes being measured.

Multiple Regression Analysis

A statistical process that involves using a range of explanatory variables to predict the behavior of a dependent variable.

Normally Distributed

The distribution is noted for its symmetry about the mean, with a higher concentration of data points near the mean and fewer occurrences as the distance from the mean increases.