Which One of the Following Is True of Defined-Contribution Plans

question 29

Multiple Choice

Which one of the following is true of defined-contribution plans?

• A) They shift the investment risk to the employer.
• B) They present greater administrative challenges to employers.
• C) They require annual premium payments to the PBGC.
• D) They guarantee a basic benefit to the employee if the employer experiences financial difficulties.
• E) They are easier to administer as compared to other plans.

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Definitions:

State/welfare capitalism

An economic system where the state undertakes commercial (i.e., for-profit) economic activity and where the welfare policies protect and benefit the economic and social well-being of the population.

Conflict theorists

Sociologists who focus on the power differentials and struggles between various social classes, often analyzing the causes and consequences of conflict in society.

Proletariat

A term used in Marxist theory to describe the class of workers who do not own the means of production and must sell their labor to survive.

Bourgeoisie

a class of people in a capitalist society who own the means of production and thus have economic and social power over the working class or proletariat.