Defined Benefit Plans Specify the Amount of Benefit an Employee

question 141

True/False

Defined benefit plans specify the amount of benefit an employee will receive on retirement while defined contribution plans specify the amounts that employers and employees will (or can)contribute to an employee's plan.

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Definitions:

Gains From Trade

The economic benefits or advantages that arise from trading goods, services, or resources between individuals, organizations, or countries, typically resulting from specialization and the division of labor.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade possibilities.

Absolute Advantage

The ability of an entity to produce more of a good or service with the same amount of resources or the ability to produce the same amount with fewer resources than competitors.

Unauthorized Practice

Engaging in legal practice or providing legal advice without the necessary licensing or accreditation.