The American system of mandatory social insurance is commonly called what?

• A. Social Security
• B. New Deal
• C. Invisible Hand
• D. Gresham's Law

Answer: (A)

This question tests your knowledge of the government program that provides mandatory social insurance for Americans. The best answer is Social Security. It’s the federal program created in 1935 to ensure workers have retirement income and to provide disability and survivor benefits, funded primarily by payroll taxes split between employers and employees. The term Social Security specifically names this system of ongoing, government-backed protection.

The other options point to different ideas: the New Deal refers to the broad set of reforms from the 1930s, not the specific program; the Invisible Hand is a metaphor for how free markets self-regulate; and Gresham's Law is a monetary principle about currency quality. None of those name the nationwide social-insurance program described here.