Social Security Funding - Social Security Chapter 13 1...

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Social Security – Chapter 13 1) The Federal Insurance Contributions Act (FICA) tax is levied on which of the  following?  All earnings up to $102,000,  Indeed, the Social Security program is rare in that   the tax used to fund it is regressive. 2) The earnings test in Social Security is essentially which of the following?  A forced savings mechanism;  The earnings test reduces the benefits of 62 to  64 year-olds but returns them with interest when a worker is truly retired. 3) Suppose that I pay into a retirement plan with the expectations that when I retire,  I will receive payments collected from people working then. This is an example of  which type of retirement plan?   Unfunded;  Social Security has traditionally been an unfunded plan. Advocates  for privatization of Social Security would like to move it toward being a funded  plan instead. 4) Which of the following refers to the expected present discounted values of a  person's future Social Security payments minus the payroll taxes that person  pays?   Social Security Wealth This allows us to measure the extent to which Social  Security redistributes income across groups and generations. 5) Which of the following are rationales for why the government should be involved  in providing retirement income?   Adverse selection can cause annuities markets to fail, paternalism;  Adverse  selection can result because although individuals may know how healthy their  lifestyle is and how likely it is that they'll live for a while, insurers probably do not. 6) Suppose that you are thinking about retiring one year earlier than you had  planned. Which of the following provides you with an incentive to do so?
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  • Fall '13
  • WEBER
  • Chapter 11, Title 11, United States Code

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