The Effect of the Retirement Test, According to Which Pensions

question 7

Multiple Choice

The effect of the retirement test, according to which pensions are clawed back, is to:

• A) improve equity between workers and retirees.
• B) discourage recipients from working.
• C) increase the funds flowing into the fund.
• D) increase reliance of private pensions.
• E) raise the supply of labour.

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Definitions:

Midpoint Formula

A method used in economics to calculate the elasticity of a variable, such as demand or supply, based on changes in price and quantity from a midpoint on a curve.

Elastic

Describes a situation in economics where the demand or supply for a good or service significantly changes in response to a change in price.

Perfectly Inelastic

A situation in market demand or supply where the quantity demanded or supplied does not change regardless of changes in price.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a state of balance in the market.