Exam 13: Social Security

Which of the following is equal to the present discounted value of Social Security's obligations minus the present discounted value of projected Social Security taxes over the next 75 years?

Which of the following is NOT true about poverty among the elderly and Social Security expenditure since 1959?

For the average person receiving Social Security benefits,benefits are roughly _________ of preretirement earnings and are ________ for low-income earners relative to high-income earners.

For each of the following,determine which group would have higher Social Security Wealth (SSW),all other things equal.Explain your answers. (a)male or female (b)born in 1925 or born in 1985 (c)single or married (d)low-wage earner or high-wage earner (e)single-earner couple or double-earner couple

Suppose someone argues that the problems faced by Social Security could be solved if we adjusted for the fact that people live longer than they used to,even given the changes to Social Security over that time.This is a reference to:

What would be the redistributive implications of fully privatizing Social Security? How does this compare with the current system?

In order to maintain a stable pay-as-you-go Social Security system when people are living longer:

Which of the following is NOT correct about the Social Security program in the United States?

Suppose you are thinking about retiring one year earlier than you had planned.Which rationale provides you with an incentive to do so?

In general,which of the following is TRUE of Social Security?

Suppose that the primary insurance amount was changed so that it was indexed by the consumer price index minus 2 percentage points.Which approach to reforming Social Security would this be?

Suppose that someone wishes to address the problems with Social Security by mandating that those now exempt from Social Security have to enroll.That approach is equivalent to:

In 1950,there were approximately __________ persons over the age of 65 for every 100 persons of working age.By 2050,there will be approximately ___________ persons over the age of 65 for every 100 persons of working age.

Which of the following is a reason there is redistribution from those born later to those born earlier?

Which is an example of an unfunded retirement plan?

Suppose the federal government allowed you to invest a portion of your payroll taxes in a personal retirement account.Assume that you could earn a higher rate of return on that money than you could have through Social Security.How would you expect that higher rate of return to affect the timing of your retirement?

Suppose you are thinking about the implications of delaying retirement by one year.Which of the following provides you with an incentive to do so?

What is the early entitlement age?

If the ratio of people receiving Social Security benefits to the number of people paying Social Security taxes increases,then:

Suppose that someone wishes to address the problems with Social Security by allowing increased immigration.That approach is equivalent to: