A Firm Wants to Use Its Benefit Package to Appeal

question 76

Multiple Choice

A firm wants to use its benefit package to appeal to applicants. One part of the benefits package is the opportunity to contribute to a retirement savings program. The recent instability of the stock market has made this less attractive. Which of the following, if true, might make the option more appealing to a prospect?

• A) In recent months, the stock market has become more bullish, making mutual funds a better bet.
• B) The firm pays the maintenance fees for the investments.
• C) Employees may choose the amount set aside each month, up to 10 percent of gross income, which is untaxed until the money is removed from the fund.
• D) Over a 10-year period, the mutual funds included in the firm's option have accrued at a rate equal to the consumer price index.
• E) The firm allows employees to select from and move funds around to a wide range of mutual fund options, some more conservative than others.

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Definitions:

Discouraged Workers

Individuals not actively seeking employment because they believe no jobs are available for them.

Labor Force

The sum of individuals either working or actively looking for work in an economic system.

Unemployment Figures

The statistics that represent the percentage of the labor force that is not employed but actively seeking employment.

Aggregate Demand

The sum of needs for all goods and services in an economy, measured at a collective price level within a set time interval.