Social Security is best described as:

Social Security is best described as:

• A. A contributory welfare program into which working Americans contribute a percentage of their wages and from which they receive cash benefits after retirement or if they become disabled.
• B. A noncontributory program financed by general revenue
• C. A private investment account
• D. A state health program

Answer: (A)

Social Security is a social insurance program funded through payroll taxes, where workers and employers contribute a portion of wages into the program. Those contributions create a fund that pays cash benefits to retired workers, people with disabilities, and survivors, with benefits earned based on earnings history. It is not financed by general revenue, not a private investment account, and not a state health program; it is a federal program administered by the government.

Social Security is a social insurance program funded through payroll taxes, where workers and employers contribute a portion of wages into the program. Those contributions create a fund that pays cash benefits to retired workers, people with disabilities, and survivors, with benefits earned based on earnings history. It is not financed by general revenue, not a private investment account, and not a state health program; it is a federal program administered by the government.