One of the Looming Concerns for Some Current Generations and Future

question 70

Multiple Choice

One of the looming concerns for some current generations and future generations is that Social Security will run out and post-retirement benefits will not be available to them. One way that lawmakers have proposed to solve this problem is to establish a system in which every worker has their own retirement savings account where a portion of their paycheck goes each pay period. So, instead of going to a pooled retirement fund for everyone to draw from, that money is set aside for that individual upon retirement. What is this proposed plan an example of?

• A) deregulation
• B) devolution
• C) privatization
• D) corrupt capitalism

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Definitions:

FOB Destination

A shipping term indicating that the seller bears the shipping costs and retains ownership of the goods until they are delivered to the buyer's location, at which point the buyer takes responsibility.

Ending Merchandise Inventory

Ending merchandise inventory is the value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting sold goods.

Perpetual Inventory System

An accounting method that continuously updates inventory records for purchases and sales in real-time.

Merchandise On Hand

The inventory of goods that a retailer has available for sale at any given time.