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:

To solve this, we analyze the worker - per - beneficiary ratio. A decreasing ratio means fewer taxed workers relative to beneficiaries. Taxed workers contribute money to the Social Security system, and beneficiaries draw money out. If there are fewer contributors (taxed workers) and more people drawing (beneficiaries), more money is being drawn from the system for each dollar put in. This creates a shortage of money in the system, and as a result, the benefits for future beneficiaries become uncertain.

• Option a: Claims the system collects more money, which is wrong as fewer workers mean less collection.
• Option b: Says the system collects more money, which is incorrect.
• Option c: Correctly states that more money is drawn for the money put in, leading to a shortage and unsure benefits.
• Option d: Claims money is left in the system, which is wrong.

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.