Which of the Following Is True About the Social Security

question 14

Multiple Choice

Which of the following is true about the Social Security pension system in the United States?

• A)Pensions received by retired workers are based entirely on their contributions to the Social Security pension trust fund and the investment return on that fund.
• B)Pensions received by married retirees with dependents are greater than that received by those without dependents.
• C)Gross replacement rates are inversely related to preretirement earnings.
• D)Both (b) and (c) are correct.

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Definitions:

Taxed

The imposition of a financial charge or other levy upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Double Taxation

A taxation principle referring to income taxes that are paid twice on the same source of income, common in C-type corporations where income is taxed at both the corporate and shareholder levels.

Corporate

Relating to a large company or group of companies authorized to act as a single entity.

Proprietorship

A business structure where the enterprise is owned and run by one person, with no legal distinction between the owner and the business.