A Defined Contribution Plan, Such as a 401(k), Gives the Employee

question 43

True/False

A defined contribution plan, such as a 401(k), gives the employee the power to decide how to invest their money within the funds offered in the plan.

---

Definitions:

Opportunity Cost

The cost of foregone alternatives when a choice is made, representing the benefits that could have been received by taking an alternative action.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than its competitors.

Absolute Advantage

Refers to the ability of a country, individual, or firm to produce a good or service more efficiently than its competitors, using the same amount of resources.

Fair Trade

An organized movement that aims to help producers in developing countries achieve better trading conditions and promote sustainability.