Question 1

The private insurance system and the Social Security system are both "fully-funded."

Accepted Answer

A) True 
 B)False  False

Question 2

Social Security became law in:

Accepted Answer

A) 1920 
B) 1929 
C) 1935 
D) 1945 
A) 1920 
B) 1929 
C) 1935 
D) 1945 C

Question 3

Which of the following does not influence the amount of a retiree's Social Security retirement benefits?

Accepted Answer

A) amount of covered earnings for each year of included work 
B) number of years after a person's 21st birthday until the year before a death, disability, or retirement 
C) annual amount of non wage income over the years calculated in the AIME 
D) maximum earnings amount subject to the tax 
A) amount of covered earnings for each year of included work 
B) number of years after a person's 21st birthday until the year before a death, disability, or retirement 
C) annual amount of non wage income over the years calculated in the AIME 
D) maximum earnings amount subject to the tax C

Question 4

Alice dies and is survived by her husband,Steve,and their child,Dawn. Steve and Dawn are each then eligible to receive a monthly Social Security survivor benefit of $1,700. If Steve goes to work and earns $100 more than the maximum monthly earnings limit,what will happen?

Accepted Answer

A) Steves $1,700 benefit payment will cease 
B) Both Steves and Dawns $1,700 benefit payment will cease 
C) Steve's benefit payment will be reduced to $1,650 
D) Both Steves and Dawns monthly benefits will be reduced to $1,650 each 
A) Steves $1,700 benefit payment will cease 
B) Both Steves and Dawns $1,700 benefit payment will cease 
C) Steve's benefit payment will be reduced to $1,650 
D) Both Steves and Dawns monthly benefits will be reduced to $1,650 each

Question 5

Which one of the following is not a characteristic of Social Security?

Accepted Answer

A) benefits are individually selectable by the covered individual 
B) participation is compulsory 
C) it can operate on a pay as you go basis with no prefunding 
D) legislative activity may change the benefits 
A) benefits are individually selectable by the covered individual 
B) participation is compulsory 
C) it can operate on a pay as you go basis with no prefunding 
D) legislative activity may change the benefits

Question 6

Explain what is meant by a "blackout period" as it applies to Social Security benefits.

Accepted Answer

The blackout period is a length of time

Question 7

The eligibility test for Social Security is known as the "needs" test.

Accepted Answer

A) True 
 B)False

Question 8

What are the requirements for receiving Social Security disability benefits?

Accepted Answer

To receive disability benefits,a person

Question 9

The "earnings test" ___________.

Accepted Answer

A) reduces Social Security survivor benefits if wage income exceeds an annually indexed amount 
B) reduces Medicare benefits if Social Security benefits exceed an annually indexed amount 
C) requires retired people to show a financial need before benefits are paid 
D) reduces Social Security benefits if earned wages exceed an annually-indexed amount 
A) reduces Social Security survivor benefits if wage income exceeds an annually indexed amount 
B) reduces Medicare benefits if Social Security benefits exceed an annually indexed amount 
C) requires retired people to show a financial need before benefits are paid 
D) reduces Social Security benefits if earned wages exceed an annually-indexed amount

Question 10

Explain what the dramatic shift was in political philosophy leading to the Social Security Act of 1935.

Accepted Answer

Before 1935,the prevailing political phi

Question 11

Social security tax applies only until an annual covered maximum wage is reached. What was that wage in 2006?

Accepted Answer

A) $84,600 
B) $90,400 
C) $94,200 
D) $99,000 
A) $84,600 
B) $90,400 
C) $94,200 
D) $99,000

Question 12

Medicare covers all the following except:

Accepted Answer

A) 95% of the cost of all outpatient prescriptions 
B) operating room costs 
C) payment for doctor bills 
D) outpatient therapy 
A) 95% of the cost of all outpatient prescriptions 
B) operating room costs 
C) payment for doctor bills 
D) outpatient therapy

Question 13

Describe the characteristics of a government insurance program.

Accepted Answer

1)participation is generally compulsory,

Question 14

Social Security operates on the basis of pooling exposures and predicting losses in advance.

Accepted Answer

A) True 
 B)False

Question 15

Social Security is financed by a tax on:

Accepted Answer

A) employees and employers 
B) only on employees 
C) only on employers 
D) all residents of the United States 
A) employees and employers 
B) only on employees 
C) only on employers 
D) all residents of the United States

Question 16

Managed care options available through Medicare:

Accepted Answer

A) are mandated for all Medicare participants 
B) result in lower out-of-pocket costs for participants 
C) are prohibitively expensive for many participants 
D) both a & b 
A) are mandated for all Medicare participants 
B) result in lower out-of-pocket costs for participants 
C) are prohibitively expensive for many participants 
D) both a & b

Question 17

Social security benefits are:

Accepted Answer

A) provided on a current-income basis 
B) actuarially reserved 
C) welfare assistance 
D) not funded by general tax revenues 
A) provided on a current-income basis 
B) actuarially reserved 
C) welfare assistance 
D) not funded by general tax revenues

Question 18

Each of the following is a Social Security benefit except:

Accepted Answer

A) retirement 
B) unemployment 
C) survivor 
D) disability 
A) retirement 
B) unemployment 
C) survivor 
D) disability

Question 19

A surviving wife's Social Security benefit ends when her youngest child reaches age 16.

Accepted Answer

A) True 
 B)False

Question 20

Suppose that Social Security measures a quarter of coverage earned as $900. Mario works during the June and July only and earns $9,000 of covered wages. How many quarters of coverage does he receive for that year?

Accepted Answer

A) 1 
B) 4 
C) 10 
D) up to 10, depending upon whether or not he is self-employed 
A) 1 
B) 4 
C) 10 
D) up to 10, depending upon whether or not he is self-employed

Exam 22: Social Security

The private insurance system and the Social Security system are both "fully-funded."

Social Security became law in:

Which of the following does not influence the amount of a retiree's Social Security retirement benefits?

Alice dies and is survived by her husband,Steve,and their child,Dawn. Steve and Dawn are each then eligible to receive a monthly Social Security survivor benefit of $1,700. If Steve goes to work and earns $100 more than the maximum monthly earnings limit,what will happen?

Which one of the following is not a characteristic of Social Security?

Explain what is meant by a "blackout period" as it applies to Social Security benefits.

The eligibility test for Social Security is known as the "needs" test.

What are the requirements for receiving Social Security disability benefits?

The "earnings test" ___________.

Explain what the dramatic shift was in political philosophy leading to the Social Security Act of 1935.

Social security tax applies only until an annual covered maximum wage is reached. What was that wage in 2006?

Medicare covers all the following except:

Describe the characteristics of a government insurance program.

Social Security operates on the basis of pooling exposures and predicting losses in advance.

Social Security is financed by a tax on:

Managed care options available through Medicare:

Social security benefits are:

Each of the following is a Social Security benefit except:

A surviving wife's Social Security benefit ends when her youngest child reaches age 16.

Suppose that Social Security measures a quarter of coverage earned as $900. Mario works during the June and July only and earns $9,000 of covered wages. How many quarters of coverage does he receive for that year?

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