Which of the Following Is Not a Characteristic of a Defined-Contribution

question 53

Multiple Choice

Which of the following is not a characteristic of a defined-contribution pension plan?

• A)The employer's contribution each period is based on a formula.
• B)The benefits to be received by employees are usually determined by an employee's three highest years of salary defined by the terms of the plan.
• C)The accounting for a defined-contribution plan is straightforward and uncomplicated.
• D)The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.

---

Definitions:

Coefficient

A numerical or constant factor in an equation that multiplies the variable, indicating the degree or level of some effect.

Price Elasticity of Supply

The measure of how the quantity supplied of a good changes in response to a change in its price.

Midpoint Formula

A method used in economics to calculate the elasticity of a variable, often used to estimate the price elasticity of demand by averaging the start and end points of a demand curve.

Elastic

A characteristic of a product or service demand that indicates a sensitivity to price changes, where a small change in price leads to a significant change in quantity demanded or supplied.