Vesting Can Make Job Changes Costly Because

question 68

Multiple Choice

Vesting can make job changes costly because:

• A) you may not be able to take your entire pension benefit from your previous job with you.
• B) once you leave one job fully vested the only other pension you can be eligible for is Social Security.
• C) you can only become fully vested in one company's pension.
• D) vested employees earn higher returns on their funds.

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Definitions:

Short-Run Supply Curve

A graph that shows the relationship between the price of a good and the quantity of that good supplied by producers over a short period, where some inputs are fixed.

Long-Run Supply Curve

A graphical representation showing how the quantity supplied of a good or service varies with price over a long period, when all inputs can be varied.

Marginal Cost

The supplementary cost associated with making an additional unit of a product or service.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is an important concept in determining optimal output levels.