Which of the following statements concerning social insurance benefits is (are)correct?
I.Social insurance benefits are heavily weighted in favor of upper-income groups because of their higher earnings.
II.Social insurance benefits are financed entirely or in part by mandatory contributions by covered employers and employees,and not by general revenues of the government.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Statement II is correct as social insurance benefits are financed by mandatory contributions by both employers and employees.

Statement I is incorrect as social insurance benefits are meant to provide income security to those who are most vulnerable, such as the elderly or disabled, and benefit levels are based on earnings history, not income level. Thus, lower-income groups tend to receive a higher percentage of their pre-retirement income from Social Security benefits than higher-income groups.

Which of the Following Statements Concerning Social Insurance Benefits Is