Demographic conditions
A) were much less favorable for the Social Security system in 1950 than is currently the case.
B) are currently unfavorable because the number of retirees is growing rapidly as the result of the high birth rate in the United States during 1930-1945.
C) will be less favorable for the Social Security system once the baby boom generation begins to retire around 2011.
D) don't affect the financial status of the Social Security system because it is based on the same principles as private insurance programs.

Question

Quizplus · Accepted Answer

The question suggests that the demographic conditions will become less favorable for the social security system once the baby boom generation begins to retire around 2011. This means that the number of retirees will increase substantially, and there will be fewer workers per retiree. This puts a strain on the financial stability of the system. Option A is incorrect because it states that the demographic conditions were less favorable in 1950, which is not related to the current conditions. Option B is misleading because it suggests that the current conditions are unfavorable, but it doesn't explain why they will become more unfavorable in the future. Option D is also incorrect because the financial status of the Social Security system is affected by demographic conditions, as it is based on the principle of intergenerational transfer of funds.

Demographic Conditions