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FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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D Question 23 Which of the following correctly justifies the argument against shifting from a pay-as-you-go system to a fully funded social security system? The surpluses accumulated in the pay-as- you-go system will have to be foregone. The administrative costs of the transition will not justify the benefits. The degree of control that individuals have over their savings will reduce. Current workers will have to contribute twice, once as per the old system and again to the new system.
Transcribed Image Text:D Question 23 Which of the following correctly justifies the argument against shifting from a pay-as-you-go system to a fully funded social security system? The surpluses accumulated in the pay-as- you-go system will have to be foregone. The administrative costs of the transition will not justify the benefits. The degree of control that individuals have over their savings will reduce. Current workers will have to contribute twice, once as per the old system and again to the new system.
Question 24 In a fully-funded social security system, any shortfall in social security is funded fully by the government retirees receive páyments based on taxes that they paid when they were working taxes levied on workers in the current year fund the payments to retirees government debt is the primary source of funding Question 25 Which of the following will affect the pay-as-you- go structure of the social security system in the long-run? Turnover in the labor market Demographic changes The velocity of money supply Gender gaps in education
Transcribed Image Text:Question 24 In a fully-funded social security system, any shortfall in social security is funded fully by the government retirees receive páyments based on taxes that they paid when they were working taxes levied on workers in the current year fund the payments to retirees government debt is the primary source of funding Question 25 Which of the following will affect the pay-as-you- go structure of the social security system in the long-run? Turnover in the labor market Demographic changes The velocity of money supply Gender gaps in education
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