Choosing Not to Participate in a 401(k)retirement Plan in Which

question 65

Multiple Choice

Choosing not to participate in a 401(k) retirement plan in which the employer matches the employee contributions

• A)is usually a good idea if you use your contributions to invest on your own.
• B)means that you give up an opportunity to double your money immediately.
• C)is a good idea if you are in a high tax bracket.
• D)is a good idea because most employers provide retirement plans anyway.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits to society from the trade of goods or services.

Equilibrium

A state of balance where demand equals supply in a market, leading to a stable price.

Total Surplus

The aggregate of consumer surplus plus producer surplus in a marketplace, symbolizing the overall advantages to society.