Statement I: Social Security benefits are financed entirely by taxes that workers pay.
Statement II: Social Security benefits are a government transfer payment.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Social Security Benefits

Social Security Benefits are payments made to eligible individuals, including retirees, disabled persons, and survivors, funded by social security taxes.

Transfer Payment

Money distributed by the government to individuals without any requirement for those individuals to provide goods or services in return.