The Idea of Government as a Contract Suggests That People

question 28

Multiple Choice

The idea of government as a contract suggests that people give their allegiance or obedience to government in exchange for

• A) democratic freedoms.
• B) protection of persons and property.
• C) the right to vote.
• D) food and entertainment.

---

Definitions:

Overfunded

A situation where a pension plan's assets exceed its liabilities, indicating that there are more than enough funds to meet future obligations.

Underfunded

A term referring to insufficient funding to meet future obligations or commitments.

Funding Requirements

The total amount of capital needed to support a business's operations, projects, or to fulfill other financial commitments.

Actuarial Assumptions

The hypotheses about demographic, financial, and other variables that actuaries use to calculate the liabilities and expenses of insurance and pension plans.