Question 1

Which of the following is NOT a characteristic of defined benefit plans?

Accepted Answer

A)  They typically pay lump benefits. 
B)  The amount of benefit is based on years of service and prior earnings. 
C)  They exclude yearly rises. 
D)  Funds may not be invested wisely; thus, there are not enough to cover all those eligible for them. 
A)  They typically pay lump benefits. 
B)  The amount of benefit is based on years of service and prior earnings. 
C)  They exclude yearly rises. 
D)  Funds may not be invested wisely; thus, there are not enough to cover all those eligible for them. A

Question 2

The majority of citizens believe that spending on Social Security is too high.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is a difference between the elderly before the 1960s and the elderly of today?

Accepted Answer

A)  Mortality rates for the elderly have increased rapidly. 
B)  The elderly now have the highest poverty rates among all age groups. 
C)  Social Security benefits for the elderly have reduced. 
D)  The median income of people who are 65 and above has risen steadily. 
A)  Mortality rates for the elderly have increased rapidly. 
B)  The elderly now have the highest poverty rates among all age groups. 
C)  Social Security benefits for the elderly have reduced. 
D)  The median income of people who are 65 and above has risen steadily. D

Question 4

Public support for Social Security is low.

Accepted Answer

A) True 
 B)False

Question 5

The _____ was passed in 1974 to curb problems associated with defined pension plans.

Accepted Answer

A)  Employee Retirement Fund 
B)  Employee Retirement Security Act 
C)  Employee Retirement Income Security Act 
D)  Employee Security Act 
A)  Employee Retirement Fund 
B)  Employee Retirement Security Act 
C)  Employee Retirement Income Security Act 
D)  Employee Security Act

Question 6

An increase in the payroll tax, to increase the Social Security fund, will fall heavily on high-income earners.

Accepted Answer

A) True 
 B)False

Question 7

The cohort that reached adulthood in the 1950s had:

Accepted Answer

A)  low birth rates. 
B)  high divorce rates. 
C)  low fertility rates. 
D)  high marriage rates. 
A)  low birth rates. 
B)  high divorce rates. 
C)  low fertility rates. 
D)  high marriage rates.

Question 8

In the context of the expected shortage of funding for Social Security benefits, one of the most popular solutions to restore the trust fund is:

Accepted Answer

A)  to reduce the benefits. 
B)  means-testing. 
C)  to reduce the cost-of-living increases. 
D)  to gradually increase the payroll tax. 
A)  to reduce the benefits. 
B)  means-testing. 
C)  to reduce the cost-of-living increases. 
D)  to gradually increase the payroll tax.

Question 9

Between 2000 and 2010, attitudes toward Social Security have shifted. Which statement best describes this shift?

Accepted Answer

A)  Elderly people now feel that too much is being spent on Social Security. 
B)  Young people now feel that too little is being spent on Social Security. 
C)  The majority of people now feel that too much is being spent on Social Security. 
D)  The majority of people now feel that the government is spending too little or just about the right amount on Social Security. 
A)  Elderly people now feel that too much is being spent on Social Security. 
B)  Young people now feel that too little is being spent on Social Security. 
C)  The majority of people now feel that too much is being spent on Social Security. 
D)  The majority of people now feel that the government is spending too little or just about the right amount on Social Security.

Question 10

Defined contribution plans represent a savings plan with some tax advantages. Which of the following is NOT a problem with defined contribution plans?

Accepted Answer

A)  The plan is involuntary. 
B)  The plan is voluntary. 
C)  Workers may withdraw funds before retirement. 
D)  Workers sometimes are encouraged or required to place all their contributions into company stock. 
A)  The plan is involuntary. 
B)  The plan is voluntary. 
C)  Workers may withdraw funds before retirement. 
D)  Workers sometimes are encouraged or required to place all their contributions into company stock.

Question 11

The elderly today do not have a diverse source of income compared to the elderly of the 1960s.

Accepted Answer

A) True 
 B)False

Question 12

What are the major differences between a defined benefit and a defined contribution plan?

Accepted Answer

Defined benefit plans and defined contri

Question 13

A vesting rule is the length of time workers must be employed by a firm before they are eligible for pension benefits.

Accepted Answer

A) True 
 B)False

Question 14

Identify an accurate statement about means-testing.

Accepted Answer

A)  It encourages people to increase their savings. 
B)  It is considered the most popular choice for funding Social Security benefits among the Liberals. 
C)  It would eliminate benefits entirely for retirees with high incomes. 
D)  It appears to encourage work in later life. 
A)  It encourages people to increase their savings. 
B)  It is considered the most popular choice for funding Social Security benefits among the Liberals. 
C)  It would eliminate benefits entirely for retirees with high incomes. 
D)  It appears to encourage work in later life.

Question 15

One of the changes contributing to the decrease in the Social Security trust fund is the decline in birth rate.

Accepted Answer

A) True 
 B)False

Question 16

Discuss the pros and cons of raising the retirement age to pressure the Social Security trust fund.

Accepted Answer

Raising the retirement age to pressure t

Question 17

One country with a means-tested age pension is _____.

Accepted Answer

A)  Australia 
B)  Finland 
C)  Germany 
D)  Italy 
A)  Australia 
B)  Finland 
C)  Germany 
D)  Italy

Question 18

The primary policy tools of government are the power to tax and the power to spend.

Accepted Answer

A) True 
 B)False

Question 19

List some things a 35-year-old could begin to do to save for her/his retirement.

Accepted Answer

1. Start contributing to a retirement sa

Question 20

Reducing benefits is an option to preserve Social Security. Which age group is likely to be adversely affected by reducing benefits?

Accepted Answer

A)  low-income elderly 
B)  middle-income elderly 
C)  higher-income elderly 
D)  corporate elderly 
A)  low-income elderly 
B)  middle-income elderly 
C)  higher-income elderly 
D)  corporate elderly

Which of the following is NOT a characteristic of defined benefit plans?

The majority of citizens believe that spending on Social Security is too high.

Which of the following is a difference between the elderly before the 1960s and the elderly of today?

Public support for Social Security is low.

The _____ was passed in 1974 to curb problems associated with defined pension plans.

An increase in the payroll tax, to increase the Social Security fund, will fall heavily on high-income earners.

The cohort that reached adulthood in the 1950s had:

In the context of the expected shortage of funding for Social Security benefits, one of the most popular solutions to restore the trust fund is:

Between 2000 and 2010, attitudes toward Social Security have shifted. Which statement best describes this shift?

Defined contribution plans represent a savings plan with some tax advantages. Which of the following is NOT a problem with defined contribution plans?

The elderly today do not have a diverse source of income compared to the elderly of the 1960s.

What are the major differences between a defined benefit and a defined contribution plan?

A vesting rule is the length of time workers must be employed by a firm before they are eligible for pension benefits.

Identify an accurate statement about means-testing.

One of the changes contributing to the decrease in the Social Security trust fund is the decline in birth rate.

Discuss the pros and cons of raising the retirement age to pressure the Social Security trust fund.

One country with a means-tested age pension is _____.

The primary policy tools of government are the power to tax and the power to spend.

List some things a 35-year-old could begin to do to save for her/his retirement.

Reducing benefits is an option to preserve Social Security. Which age group is likely to be adversely affected by reducing benefits?

The Field of Social Gerontology

Life Course Transitions

Theories of Aging

Demography of Aging

Old Age and the Welfare State

Biological Perspectives on Aging

Psychological Perspectives on Aging

Family Relationships and Social Support Systems

Living Arrangements

Work and Retirement

Health and Health Care

Caring for the Frail Elderly

Dying, Death, and Bereavement

Poverty and Inequality

The Politics of Aging

Filters

Exam 14: The Economics of Aging

Which of the following is NOT a characteristic of defined benefit plans?

The majority of citizens believe that spending on Social Security is too high.

Which of the following is a difference between the elderly before the 1960s and the elderly of today?

Public support for Social Security is low.

The _____ was passed in 1974 to curb problems associated with defined pension plans.

An increase in the payroll tax, to increase the Social Security fund, will fall heavily on high-income earners.

The cohort that reached adulthood in the 1950s had:

In the context of the expected shortage of funding for Social Security benefits, one of the most popular solutions to restore the trust fund is:

Between 2000 and 2010, attitudes toward Social Security have shifted. Which statement best describes this shift?

Defined contribution plans represent a savings plan with some tax advantages. Which of the following is NOT a problem with defined contribution plans?

The elderly today do not have a diverse source of income compared to the elderly of the 1960s.

What are the major differences between a defined benefit and a defined contribution plan?

A vesting rule is the length of time workers must be employed by a firm before they are eligible for pension benefits.

Identify an accurate statement about means-testing.

One of the changes contributing to the decrease in the Social Security trust fund is the decline in birth rate.

Discuss the pros and cons of raising the retirement age to pressure the Social Security trust fund.

One country with a means-tested age pension is _____.

The primary policy tools of government are the power to tax and the power to spend.

List some things a 35-year-old could begin to do to save for her/his retirement.

Reducing benefits is an option to preserve Social Security. Which age group is likely to be adversely affected by reducing benefits?

The Field of Social Gerontology

Life Course Transitions

Theories of Aging

Demography of Aging

Old Age and the Welfare State

Biological Perspectives on Aging

Psychological Perspectives on Aging

Family Relationships and Social Support Systems

Living Arrangements

Work and Retirement

Health and Health Care

Caring for the Frail Elderly

Dying, Death, and Bereavement

Poverty and Inequality

The Politics of Aging

Filters