The Social Security Administration periodically calculates a number of hypothetical money’s worth ratios for an individual worker or cohort of workers based on earnings, year of birth, gender, and marital status.

a. What is the money’s worth ratio?

b. Identify the groups that have (i) favorable and (ii) unfavorable money’s worth ratios.

c. If the money’s worth ratio is less than one for an individual worker or cohort of workers, does this mean that the Social Security program is a “bad buy”? Explain your answer.