This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain the main difference between the pay-as-you-go system employed by Social Security and a ... (Read 39 times)

ahriuashd

  • Hero Member
  • *****
  • Posts: 535
on: Jul 1, 2018
Explain the main difference between the pay-as-you-go system employed by Social Security and a private pension plan.
 
  What will be an ideal response?

Question 2

Empirical evidence from electric-power-producing firms suggests that
 
  A) all electric-power-producing firms are natural monopolies.
  B) no electric-power-producing firms are natural monopolies.
  C) the largest electric-power-producing firms are natural monopolies.
  D) the smallest electric-power-producing firms are natural monopolies.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Zebsrer

  • Sr. Member
  • ****
  • Posts: 284
Reply #1 on: Jul 1, 2018
Answer to Question 1

Superficially, the two systems look the same. Individuals pay money now in order to receive benefits in the future. The pay-as-you-go system, however, merely takes the contributions from current contributors and uses them to pay current retirees. In that way, the Social Security system is unfunded because without new contributions from current and future workers, benefits could not be paid today and into the future. A private pension plan, on the other hand, takes contributions from individuals, invests them, and pays the individual's retirement benefits out of the individual's contribution. Thus a private pension plan should be fully funded in that the pension plan will have a fund of past contributions and interest out of which current benefits are paid.

Answer to Question 2

D


ahriuashd

  • Member
  • Posts: 535
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

The metanephridial filtration system of annelids. The metanephridial filtration system of annelids.
Endocrine System - Fish Endocrine System - Fish
Despite the globe’s vast social change, people all over the world continue to make race a ... Despite the globe’s vast social change, people all over the world continue to make race a ...
Example of a Regulatory System Example of a Regulatory System
Measuring Social Development Measuring Social Development
Bandura's social-cognitive model of human behaviour Bandura's social-cognitive model of human behaviour
Video: Spinal Cord Injury Animation

For a complete list of videos, visit our video library