Which of the Following Statements About Retirement Benefits Under Pension

question 15

Multiple Choice

Which of the following statements about retirement benefits under pension plans is true?

• A)Under a flat percentage of annual earnings defined benefit formula,each employee receives the same dollar benefit.
• B)A benefit using final pay is usually based on an employee's earnings during the last month of plan participation.
• C)A unit-benefit formula considers both earnings and years of service.
• D)Past service benefits are the result of bonuses and overtime pay during the period an employee participated in the plan.

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Definitions:

Competitive Market

A market structure in which many firms offer products or services that are similar, allowing consumers to have choices, leading to lower prices due to competition.

Long-Run

A period in which all factors of production and costs are variable, allowing for full adjustment to any changes.

Market Demand

The total quantity of a good or service that all consumers are willing and able to purchase at various price levels within a given market, at a specific time.

Short Run

A time period during which at least one input, such as plant size or capital, is fixed and cannot be changed.