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49 Cards in this Set
- Front
- Back
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Social Security benefit levels are based on ...
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prior earnings and length of work history
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What is the distinguishing features of social insurance programs?
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1- Provides economic security over the life course
2- Prevents people from falling into destitution rather than rescue em' |
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What is the distinguishing feature of fiscal welfare programs?
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1- indirect payments made to individuals through tax breaks.
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Which type of tax finances the majority of federal social assistance programs
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Income taxes
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Which type of tax finances the majority of federal social insurance programs
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Payroll taxes paid by workers and employers
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Fiscal Welfare is.....
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indirect payments to individuals through the tax system
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Fiscal welfare programs are know better as....
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tax breaks
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Define the “replacement rate"....
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the portion of preretirement pay that is replaced by the Social security benefit
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What income [H/L] have higher social security replacement rate?
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1- low
2- because higher lifetime earning have lower replacement rates |
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In what year was legislation passed establishing Social Security?
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1935
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In what year was legislation passed establishing Medicare/Medicaid?
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1965
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What is the source of the largest share of older people’s income...
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Social security.
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What is Supplemental Security Income?
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a means tested program of public assistance for the aged, blind and disabled poor who had not earned the right to social security
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How is the Social Security benefit affected by retiring at 62 rather than 65 years of age?
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Workers that retire at 62 receive 20% reduced benefits
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What is the difference between a progressive tax and a regressive tax
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1- Progressive-the more you earn, the higher your tax rate.
2- Regressive tax, the less you earn, the higher your rate. |
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Which federal tax is considered progressive....
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income taxes
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Which federal tax is considered regressive...
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social security
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Define labor force participation.....
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People who are “in the labor force” are either working or actively looking for work.
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what is a job that spans the period between full-time employment and full-time retirement called?
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bridge job
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what is contingent work?
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an arrangement in which workers are hired on temporary basis to do a specific task
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What factors increase satisfaction with retirement?
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1- good health
2- adequate income 3- advanced planning 4- voluntarily retiring 5- access to social support |
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How does Social Security influence the decision to retire?
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1- Before, workers had to retire before they could get full benefits; eliminated in 2000
2- The elimination of the earnings test has increased labor force participation 3- Disability SS provides benefits monthly regardless of age |
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What are the primary reasons for women’s increased labor force participation?
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1- passage of civil rights act of 1965
2- the expansion of the service industry 3- the decline in mens wages |
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Do early incentive programs increase the likelihood of eligible workers retiring sooner?
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yes, bc the programs allow access to pensions before the age of 65
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What is the source of the largest share of older people’s income?
others? |
Social security
pensions and personal savings |
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What factors contribute to improved economic status of the elderly cohort?
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1- Marrying later in life
2- more education -> equals better jobs 3- fewer children 4- more two earner households 5- more savings, pensions, and inherited wealth. |
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Older people have the majority of their net worth (or wealth) tied up in which asset?
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their homes
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Social Security trust fund currently reflects a balance balance of credits and debits, or a deficit?
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right now it has more credit but will reverse by 2027
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Which individuals would be most negatively affected by increasing the retirement age?
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The ones now, because they haven’t been planning for a change.
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Which proposed Social Security reform might discourage people from saving over their lifetimes?
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means testing
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What are the proposed Social Security reforms?
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1- The reduce in benefits
2- Raise the retirement age 3- Increase revenues 4- Means-testing 5- Privatization |
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How would means-testing work as a Social Security reform?
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It would work as a way to make sure that the ppl that need money will get it but it will hurt the people that saved over their lifetimes
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What source of retirement income shows the greatest racial difference?
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Assets like stocks, bonds and rental properties
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What factors explain women’s lower Social Security income (compared to men)?
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1- they have fewer years of total employment
2- less access to pension benefits |
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How does cumulative disadvantage affect old age?
which [gender, race and ethnicity] groups are most disadvantaged? |
Begin life with fewer resources
-> fewer opportunities to acquire more resource -> they fall farther and farther behind Women, Hispanic elderly |
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Which group of Hispanic elderly has the lowest income and highest rates of poverty?
Mexico, Puerto Rico, Cuba, and Central and South America |
1- Puerto Rican [lowest income]
2- Cuban highest [highest poverty] |
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Which minority group (e.g., Hispanic, African American, Asian, and Native American) has the highest income and the highest levels of education?
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Asian
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Which minority group has the highest unemployment and mortality rate?
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Native Americans
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what is horizontal equity?
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The theory stating that people in the same income bracket should be taxed at the same rate.
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what is vertical equity and what drives it?
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1- the amount of taxes paid increase with the amount of earned income.
2- the notion that those who are more able to pay taxes should contribute more than those who are not |
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Entitlement programs provide benefits based on....
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categorical eligibility
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Social assistance program eligibility is determined by...
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means test
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social ______ programs provide minimal benefits to the very needy
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assistance
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Social insurance program benefits are considered to be “earned” because....
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they provide income and health benefits to ppl who save over their working life
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what type of benefit typically relies on a means test?
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social assistance
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what is the distinguishing feature of social insurance?
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people must earn the right to benefits
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what do payroll taxes finance?
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Social security & medicare part A
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What are social security benefit levels based on?
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what a worker has earned over the 35 years of highest earnings
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fiscal welfare benefits are distributed through....
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the tax system
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