Which of the Following Best Describes a "Defined Contribution Plan

question 49

Multiple Choice

Which of the following best describes a "defined contribution plan"?

• A)A pension plan where the employer can reduce its contributions if it is overfunded.
• B)A pension plan that place investment risk on the employees.
• C)A pension plan that place investment risk on the employers.
• D)A pension plan where the employee can decrease its contributions if it is overfunded.

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Definitions:

Unfunded Liabilities

Financial obligations that do not have enough funds set aside to cover them, often relating to pensions or other long-term commitments.

Monetary Policy

The management of the money supply and interest rates by the central bank to influence economic growth and stability.

Public Choice Economists

Economists who apply economic principles and methodologies to study and analyze political behavior and public policies.

Optimal Allocation

The most efficient distribution of resources among different possible uses that maximizes desired outcomes, such as profit or social welfare, without wasting any resources.