A(n) ________ Plan Is a Type of Defined-Benefit Pension Plan

question 8

Multiple Choice

A(n) ________ plan is a type of defined-benefit pension plan under which an employer credits a participant's account with a set percentage of his or her yearly compensation plus interest. The investment performance of the fund does not affect the final benefits to be received by the participant upon retirement.

• A) employee stock ownership
• B) cash balance
• C) tax-deferred 401(k)
• D) fixed contribution

---

Definitions:

Supply Functions

Mathematical expressions that relate the quantity of a good that producers are willing to sell to the price of the good and other factors.

Demand Functions

Mathematical representations that describe the relationship between the quantity demanded of a good and its determinants like price, income, and preferences.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity.

Economic Efficiency

A situation where resources are allocated in the most effective way, maximizing total benefits while minimizing waste and costs.