University of Maryland, Baltimore County

AGNG 200

Quiz 12

Controversy 9. What is the Future for Social Security?

1)The public retirement pension system administered by the federal government is called

               .

1. 1. 1. Pension
      2. Personal retirement savings
      3. Social Security
      4. 401k

1. 2.                . Social Security is funded by a tax on wages during working years, followed by a                

during retirement years.

1. 1. 1. Wage subsidy
      2. Wage freeze
      3. Tax on savings
      4. Tax on 401k earnings

1. 3.                . According to the textbook, the average retirement benefit for a single individual in 2016 was around                        .
      1. $6,000 per year
      2. $16,000 per year
      3. $25,000 per year
      4. $65,000 per year

1. 4.                . Social Security wage earners are entitled to which of the following?
      1. Retirement benefits
      2. Disability insurance
      3. Life insurance
      4. All of the above

1. 5.                . When a tax structured requires person who earns $20,000 a year pays the same 6.2% tax rate as someone who earns $106,000 a year is called a                               .
      1. Regressive tax
      2. Back tax
      3. Redistributive tax
      4. Replacement tax

1. 6.         . Controversies about the Social Security program revolve around which of the following questions?
      1. How much taxes should be paid into the system?
      2. Who should receive benefits?
      3. What level of benefits should be paid to those who are retired?
      4. Both A and B
      5. Both A and C

1. 7.                . The proportion of wages replaced by Social Security at the point of retirement is called the

               .

1. 1. 1. Regressive rate
      2. Back tax rate
      3. Redistributive rate
      4. Replacement rate

1. 8.                . Social Security is funded by payroll taxes that go into a large account called the              .
      1. Social Security Trust Fund
      2. Social Security Surplus Fund
      3. Social Security Hedge Fund
      4. Social Security Success Fund