Question

which of the following statements accurately describes the result of a decreasing worker-per-beneficiary ratio in the social security system?
a. fewer taxed workers than beneficiaries means that the system is collecting more money for
the money being drawn out. this leaves money in the system and secures benefits for future
beneficiaries.
b. fewer taxed workers than beneficiaries means that the system is collecting more money for
the money being drawn out. this leaves a shortage of money in the system making benefits
for future beneficiaries unsure.
c. fewer taxed workers than beneficiaries means that more money is being drawn from the
system for the money put in. this leaves a shortage of money in the system making benefits
for future beneficiaries unsure.
d. fewer taxed workers than beneficiaries means that more money is being drawn from the
system for the money put in. this leaves money in the system and secures benefits for
future beneficiaries.

Explanation:

The worker - per - beneficiary ratio is decreasing, meaning there are fewer taxed workers (who contribute money to the Social Security system) relative to beneficiaries (who draw money from the system). If there are fewer contributors and more recipients, more money is being drawn out for each dollar put in. This creates a shortage of funds in the system, and the benefits for future beneficiaries become uncertain.

• Option a is incorrect because a lower number of taxed workers than beneficiaries would not leave money in the system; rather, it would create a deficit.
• Option b is incorrect as fewer taxed workers than beneficiaries means less money is being collected for the money drawn out, not more.
• Option d is incorrect as the situation of fewer taxed workers than beneficiaries leads to a shortage, not a surplus of money in the system.

Answer:

c. Fewer taxed workers than beneficiaries means that more money is being drawn from the system for the money put in. This leaves a shortage of money in the system making benefits for future beneficiaries unsure.