Question

Which of the following statements about Medicare and Social Security are false? Choose one or more:

A. Medicare and Social Security represent about 10% of total federal government spending.

B. Medicare is a program that provides health care to the poor and to the elderly.

C. Medicare and Social Security are mandatory outlays.

D. Social Security and Medicare are social insurance programs.

E. Spending on Medicare and Social Security has increased dramatically as the population has gotten older.

Answer 1

Correct options:

A. Medicare and Social Security represent about 10% of total federal government spending.

B. Medicare is a program that provides health care to the poor and to the elderly.

Reason: The above two statements are false.

This is because the Medicare and SS represent a much larger share of close to 15-17% the total federal government spending. Also, Medicare provides healthcare to the elderly and disabled, not the poor.

Rest of the statements are true.