Which of the following are reasons why Social Security is compulsory?
A)A pay-as-you-go system needs new contributors to maintain solvency.
B)A pay-as-you go system cannot let older individuals opt out of benefits.
C)The adverse selection problem.
D)all of the above
E)a and c

Question

Quizplus · Accepted Answer

Social Security is compulsory to ensure a steady stream of new contributors to maintain the pay-as-you-go system's solvency (A) and to mitigate the adverse selection problem, where only those who expect to benefit would opt in, potentially destabilizing the system (C).

Which of the Following Are Reasons Why Social Security Is