Deck 9: Social Insurance

Question 1

The two key complementary components of the Social Security Act were:

A)Social security and unemployment insurance
B)Social insurance and public assistance
C)Social welfare and health care
D)Disability insurance and Medicare
E)Social programming and public initiatives

Answer 1

B

Question 2

Many argue that the future of Social Security is in jeopardy.  Which of the following is NOT a reason to worry about the future of the program?

A)sufficient funds in the Trust Fund over the next 40 years
B)coverage of low-income children
C)ratio of current workers to retirees
D)cost of benefits paid out to retirees
E)Trust Fund investment strategies

Answer 2

B

Question 3

Social Security has evolved since its inception in 1935.  Describe how the program works today. What are its strengths?  What are weaknesses of the program?

Answer 3

Answers Will Vary

Question 4

Today, social insurance programs include:

A)Unemployment Insurance
B)Temporary Assistance for Needy Families
C)Supplemental Security Income
D)Maternal and Child Welfare grants
E)Old Age Assistance

Question 5

Describe three significant differences between social insurance and public assistance.

Question 6

What are the key components of Social Security and who is eligible for each service?

Question 7

Social Security is the main source of income for two-thirds of all elderly people.

Question 8

The full name of Social Security today is Old Age Survivors Disability Insurance.

Question 9

Privatization of Social Security has been raised as a serious policy over the years, and will likely continue to be discussed.  How might the Social Security program benefit from privatization?  How might the program be hurt by privatization?

Question 10

From its introduction as a policy proposal, Social Security was widely embraced because of its support for the elderly and people with disabilities.

Question 11

When the Social Security Act was passed in 1935, the public and legislators embraced which program?

A)Social insurance
B)Public Assistance
C)Disability insurance
D)Health coverage insurance
E)None of the programs

Question 12

The following programs were all part of the original Social Security Act of 1935:

A)Old Age Insurance
B)Mothers' pensions
C)Supplemental Security Income
D)Medicare
E)Food Stamps

Question 13

Disability Insurance was:

A)a part of the original Social Security Act
B)added in 1945
C)added in 1956
D)added in 1965
E)added under the Americans with Disabilities Act

Question 14

Social insurance is:

A)assistance designed for low-income persons
B)collectively funded program for workers and their dependents
C)ODSAI
D)voluntary
E)funded through federal and state taxes

Question 15

The original Social Security Act of 1935 included Grants to States for Aid to Dependent Children and Medicare .

Question 16

The overall intent of the Social Security Act was to create programs that would:

A)Respond to immediate crisis while planning for long term security
B)Respond to future crises
C)Build a long term financial retirement system
D)Provide for the poorest members of society
E)Develop a comprehensive financial and health care system

Question 17

Social Security historically has included fairness in resource distribution by race and gender.

Question 18

The Social Security trust funds are projected to run out by 2019.

Question 19

The tax rate for OASDI is:

A)7.65%
B)5.45%
C)6.20%
D)1.45%
E)12.50%

Question 20

Which of the following is true about privatization of Social Security?

A)Private accounts would encourage less individual responsibility
B)Those who understand financial markets would do well
C)Private accounts would be stable and not fluctuate
D)Knowledge about the financial marketplace would not be helpful
E)Private accounts would guarantee benefits

Question 21

Do you think Social Security will be there when you retire?  Why?

Question 22

Social Security is considered our most successful social welfare program.  However, there are limitations to the program.  What are those limitations?  Explain the impact and significance of those limitations.