The Difference Between Social Security and Private Insurance Is

question 21

Multiple Choice

The difference between Social Security and private insurance is:

• A) private insurance is a pay-as-you-go system while Social Security is fully-funded.
• B) private insurance is not indexed for inflation, while Social Security is.
• C) private insurance benefits are subject to an earnings penalty, Social Security benefits are not.
• D) private insurance benefits are treated more favorably in the tax code than Social Security benefits.

Demonstrate knowledge of niche theory, including the concepts of ecological niches, competitive exclusion, and resource partitioning.

Understand the basic concepts and models of ecological succession, including climax-pattern, facilitation, tolerance, and inhibition models.

Identify and describe different types of symbiotic relationships: mutualism, commensalism, and parasitism.

Distinguish between primary and secondary succession and the factors influencing each.

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Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity and preferred equity, which is used to finance its overall operations and growth.

Economic Expansion

A phase of the business cycle where the economy grows and increases in activity, marked by rising GDP, employment, and income.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profitability that includes all expenses except interest and income tax expenses.

Unlevered Firm

A company that operates without any debt financing, relying solely on equity for its financing needs.