Question 1

Social Security wealth is the future value of the Social Security system.

Accepted Answer

A) True 
 B)False

Question 2

A current worker may save more towards retirement so that he or she will have more to leave his or her children later.This altruistic motive is known as the

Accepted Answer

A) altruism effect. 
B) bequest effect. 
C) income effect. 
D) savings effect. 
A) altruism effect. 
B) bequest effect. 
C) income effect. 
D) savings effect.

Question 3

An actuarially fair return means

Accepted Answer

A) returns on investments are indexed to the stock market. 
B) returns on investments have to be positive. 
C) benefits received,on average,would be equal to the premiums paid. 
D) premiums for insurance are generally paid by the government. 
A) returns on investments are indexed to the stock market. 
B) returns on investments have to be positive. 
C) benefits received,on average,would be equal to the premiums paid. 
D) premiums for insurance are generally paid by the government.

Question 4

A worker within the middle?income class is preparing to retire.In the year before he retired,his gross monthly earnings are $2,500.His Social Security benefits will be $1,500 per month.Before he retired,his income was subject to a tax of 30 percent.Find his before-tax and after-tax replacement rates.

Accepted Answer

His before-tax replacement rat

Question 5

According to the Bureau of Labor Statistics,in the Federal Government,the starting salary for economists having a bachelor's degree was $35,752 in 2007.Assume that our economist will get this government job that offers a 3 percent raise annually.After 5 years of working,she quits and never works again.How much will this worker have earned over her brief working career? How much will she have paid in Social Security and Medicare taxes if the tax rate is 7.45 percent?

Accepted Answer

The worker will have earned a

Question 6

Broadly speaking,Social Security redistributes incomes from high- to low- income individuals,from men to women,and from young to old.

Accepted Answer

A) True 
 B)False

Question 7

Social Security is used to redistribute income.

Accepted Answer

A) True 
 B)False

Question 8

An earnings test as it relates to Social Security implies

Accepted Answer

A) benefits are reduced by some predetermined amount for those who have not reached normal retirement age. 
B) the amount of money earned during the working life of an individual determines the amount of benefits received. 
C) family earnings determine the amount of benefits received. 
D) all of the above. 
A) benefits are reduced by some predetermined amount for those who have not reached normal retirement age. 
B) the amount of money earned during the working life of an individual determines the amount of benefits received. 
C) family earnings determine the amount of benefits received. 
D) all of the above.

Question 9

Social Security pension benefits are

Accepted Answer

A) subject to income taxes for those with certain income levels. 
B) non-taxable for all retirees. 
C) subject to state,but not federal,income taxes. 
D) subject to capital gains taxes. 
A) subject to income taxes for those with certain income levels. 
B) non-taxable for all retirees. 
C) subject to state,but not federal,income taxes. 
D) subject to capital gains taxes.

Question 10

A fully funded plan requires

Accepted Answer

A) you to pay for your dinner as you go to the table to eat. 
B) current working citizens to pay for current retired citizens. 
C) no taxes since current workers pay for current retirees. 
D) retirees to be paid from accounts that have accumulated with interest over their working lives. 
A) you to pay for your dinner as you go to the table to eat. 
B) current working citizens to pay for current retired citizens. 
C) no taxes since current workers pay for current retirees. 
D) retirees to be paid from accounts that have accumulated with interest over their working lives.

Social Security wealth is the future value of the Social Security system.

A current worker may save more towards retirement so that he or she will have more to leave his or her children later.This altruistic motive is known as the

An actuarially fair return means

Broadly speaking,Social Security redistributes incomes from high- to low- income individuals,from men to women,and from young to old.

Social Security is used to redistribute income.

An earnings test as it relates to Social Security implies

Social Security pension benefits are

A fully funded plan requires

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

Exam 11: Social Security

Social Security wealth is the future value of the Social Security system.

A current worker may save more towards retirement so that he or she will have more to leave his or her children later.This altruistic motive is known as the

An actuarially fair return means

Broadly speaking,Social Security redistributes incomes from high- to low- income individuals,from men to women,and from young to old.

Social Security is used to redistribute income.

An earnings test as it relates to Social Security implies

Social Security pension benefits are

A fully funded plan requires

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters