Question 1

Which of the following is true about privatization of Social Security?

Accepted Answer

A)  Private accounts would encourage less individual responsibility
B)  Those who understand financial markets would do well
C)  Private accounts would be stable and not fluctuate
D)  Knowledge about the financial marketplace would not be helpful
E)  Private accounts would guarantee benefits B

Question 2

Social Security is the main source of income for two-thirds of all elderly people.

Accepted Answer

A) True 
 B)False  True

Question 3

What are the key components of Social Security and who is eligible for each service?

Accepted Answer

Social Security is a comprehensive program that provides financial assistance to individuals who are retired, disabled, or have lost a family member. The key components of Social Security include retirement benefits, disability benefits, survivor benefits, and Medicare.

1. Retirement benefits: These are available to individuals who have worked and paid Social Security taxes for a certain number of years. Generally, individuals become eligible for retirement benefits at age 62, but the full retirement age is gradually increasing to 67 for those born in 1960 or later. Spouses and ex-spouses may also be eligible for retirement benefits based on their own work history or their spouse's work history.

2. Disability benefits: These are available to individuals who have a medical condition that prevents them from working and is expected to last at least one year or result in death. To be eligible for disability benefits, individuals must have worked and paid Social Security taxes for a certain number of years. There are also special rules for younger workers who have not worked long enough to qualify for regular disability benefits.

3. Survivor benefits: These are available to the family members of a deceased worker, including a widow or widower, children, and dependent parents. To be eligible for survivor benefits, the deceased worker must have worked and paid Social Security taxes for a certain number of years. The amount of the survivor benefit depends on the worker's earnings history.

4. Medicare: This is a federal health insurance program for people who are age 65 or older, certain younger people with disabilities, and people with end-stage renal disease. Individuals become eligible for Medicare based on age or disability status, and the program helps cover the cost of hospital care, medical services, and prescription drugs.

Overall, the key components of Social Security provide financial support to individuals at different stages of life, including retirement, disability, and in the event of a family member's death. Eligibility for each service is based on an individual's work history, age, and specific circumstances.

Question 4

The Social Security trust funds are projected to run out by 2019.

Accepted Answer

A) True 
 B)False

Question 5

Privatization of Social Security has been raised as a serious policy over the years, and will likely continue to be discussed.  How might the Social Security program benefit from privatization?  How might the program be hurt by privatization?

Accepted Answer

The answer of Privatization of Social Security has been raised...

Question 6

Disability Insurance was:

Accepted Answer

A)  a part of the original Social Security Act
B)  added in 1945
C)  added in 1956
D)  added in 1965
E)  added under the Americans with Disabilities Act

Question 7

The following programs were all part of the original Social Security Act of 1935:

Accepted Answer

A)  Old Age Insurance
B)  Mothers' pensions
C)  Supplemental Security Income
D)  Medicare
E)  Food Stamps

Question 8

When the Social Security Act was passed in 1935, the public and legislators embraced which program?

Accepted Answer

A)  Social insurance
B)  Public Assistance
C)  Disability insurance
D)  Health coverage insurance
E)  None of the programs

Question 9

Many argue that the future of Social Security is in jeopardy.  Which of the following is NOT a reason to worry about the future of the program?

Accepted Answer

A)  sufficient funds in the Trust Fund over the next 40 years
B)  coverage of low-income children
C)  ratio of current workers to retirees
D)  cost of benefits paid out to retirees
E)  Trust Fund investment strategies

Question 10

The two key complementary components of the Social Security Act were:

Accepted Answer

A)  Social security and unemployment insurance
B)  Social insurance and public assistance
C)  Social welfare and health care
D)  Disability insurance and Medicare
E)  Social programming and public initiatives

Question 11

Social insurance is:

Accepted Answer

A)  assistance designed for low-income persons
B)  collectively funded program for workers and their dependents
C)  ODSAI
D)  voluntary
E)  funded through federal and state taxes

Question 12

The full name of Social Security today is Old Age Survivors Disability Insurance.

Accepted Answer

A) True 
 B)False

Question 13

The overall intent of the Social Security Act was to create programs that would:

Accepted Answer

A)  Respond to immediate crisis while planning for long term security
B)  Respond to future crises
C)  Build a long term financial retirement system
D)  Provide for the poorest members of society
E)  Develop a comprehensive financial and health care system

Question 14

The tax rate for OASDI is:

Accepted Answer

A)  7.65%
B)  5.45%
C)  6.20%
D)  1.45%
E)  12.50%

Question 15

Social Security historically has included fairness in resource distribution by race and gender.

Accepted Answer

A) True 
 B)False

Question 16

Describe three significant differences between social insurance and public assistance.

Accepted Answer

The answer of Describe three significant differences between social insurance...

Question 17

Social Security has evolved since its inception in 1935.  Describe how the program works today. What are its strengths?  What are weaknesses of the program?

Accepted Answer

The answer of Social Security has evolved since its inception...

Question 18

The original Social Security Act of 1935 included Grants to States for Aid to Dependent Children and Medicare .

Accepted Answer

A) True 
 B)False

Question 19

Today, social insurance programs include:

Accepted Answer

A)  Unemployment Insurance
B)  Temporary Assistance for Needy Families
C)  Supplemental Security Income
D)  Maternal and Child Welfare grants
E)  Old Age Assistance

Question 20

Social Security is considered our most successful social welfare program.  However, there are limitations to the program.  What are those limitations?  Explain the impact and significance of those limitations.

Accepted Answer

The answer of Social Security is considered our most successful...

Exam 9: Social Insurance

Which of the following is true about privatization of Social Security?

Social Security is the main source of income for two-thirds of all elderly people.

What are the key components of Social Security and who is eligible for each service?

The Social Security trust funds are projected to run out by 2019.

Privatization of Social Security has been raised as a serious policy over the years, and will likely continue to be discussed. How might the Social Security program benefit from privatization? How might the program be hurt by privatization?

Disability Insurance was:

The following programs were all part of the original Social Security Act of 1935:

When the Social Security Act was passed in 1935, the public and legislators embraced which program?

Many argue that the future of Social Security is in jeopardy. Which of the following is NOT a reason to worry about the future of the program?

The two key complementary components of the Social Security Act were:

Social insurance is:

The full name of Social Security today is Old Age Survivors Disability Insurance.

The overall intent of the Social Security Act was to create programs that would:

The tax rate for OASDI is:

Social Security historically has included fairness in resource distribution by race and gender.

Describe three significant differences between social insurance and public assistance.

Social Security has evolved since its inception in 1935. Describe how the program works today. What are its strengths? What are weaknesses of the program?

The original Social Security Act of 1935 included Grants to States for Aid to Dependent Children and Medicare .

Today, social insurance programs include:

Social Security is considered our most successful social welfare program. However, there are limitations to the program. What are those limitations? Explain the impact and significance of those limitations.