Which Government Program Would Be Considered an "Entitlement" Program

question 143

Multiple Choice

Which government program would be considered an "entitlement" program?

• A) national defense
• B) subsidies for mass transportation
• C) law enforcement in major U.S. cities
• D) Social Security

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Definitions:

Social Security Credit

Based on total wages and self-employment income during the year; the amount of earnings it takes to earn a credit changes each year; in 2009, a person had to earn $1,090 in covered earnings to get one credit; people born after 1929 need 40 credits in their lifetime to qualify for Social Security benefits.

Earnings

The amount of profit that a company produces during a specific period, indicating the financial performance.

401k Plan

A retirement savings plan offered by many American employers, allowing employees to save and invest a piece of their paycheck before taxes.

Employer's Contribution

Money that an employer adds to an employee's benefits, such as a retirement plan or health insurance.