Exam 16: Social Security: Leading Issues and Approaches to Reform

Income from Social Security receives more favorable treatment in the federal tax code than income from private retirement funds because:

Which of the following may account for the decrease in the labor force participation rate of men 65 and older?

If the supply curve of labor is vertical, then wage decreases will have no effect on the number of hours worked.

In a fully-funded private retirement plan:

The upper limit of the retirement age is:

Studies indicate that Social Security benefits have had:

Social Security is indexed for inflation, while private insurance is not.

Social Security benefits cause Michael to retire at age 65 instead of 75. In order to finance the longer period of retirement Michael decides to increase his rate of savings. This is an example of the:

Social Security has significantly improved the financial status of the elderly.

Use the following diagram to answer the following questions. -Refer to Payroll. In the absence of a payroll tax, labors' earning will equal the area:

In its broadest sense, Social Security refers to:

Congress probably intended for workers to bear most of the burden of the Social Security payroll tax.

Which of the following would be most likely to cause savings to fall in response to the payment of Social Security benefits?

Use the following diagram to answer the following questions. -Refer to Payroll. Suppose a payroll tax of 7% is imposed. By how much will the wage rate of the workers fall?

In a fully-funded private retirement fund, assets only cover expenses and benefits for a few years.

The rate of return on Social Security shows the average annual net income earned on taxes "invested" in Social Security.

Social Security may result in an increase in the supply of labor because it induces workers to retire at an earlier age.

The normal retirement age is:

A decrease in the wage rate will have a smaller impact on hours worked if the:

Increasing the retirement age for OASI has been one option suggested for dealing with the exhaustion of the OASI Trust Fund.