Deck 9: Finances and Lifestyles

Question 1

Which of the following is NOT a factor contributing to the predicted bankruptcy of the Social Security system?

A) Social Security is a trust fund.
B) the baby-boomer generation will be retiring.
C) people are living longer.
D) women have been having more children since the 1960s.

Answer 1

D

Question 2

It has been projected that by the year 2030,there will be _______ million individuals 65 and older.

A) 500
B) 650
C) 854
D) 974

Answer 2

D

Question 3

The major source of income of older adults include:

A) Social Security, private pension, assets, and investments
B) Social Secutiry, children assistance, and spouse income
C) working income, private pension, and investments
D) working income, spouse income, and children assistance

Answer 3

A

Question 4

About ______ percent of older home owners in 1995 owned their homes free and clear.

A) 35
B) 50
C) 65
D) 80

Question 5

Which statement is correct regarding older Americans in the 1900s?

A) They were poor or near poor.
B) They were rich with plenty of land.
C) They felt they were old.
D) They resented their children.

Question 6

In 2004,one-quarter of Americans _______ years of age have Social Security constituting 90% of their income.

A) 65
B) 62
C) 60
D) 55

Question 7

In 1945,42 workers supported one retiree; today,_______ workers support a retiree.

A) 3
B) 5
C) 12
D) 24

Question 8

The poverty rate for African American women living alone is _________ the national average.

A) about fifty-percent more than
B) twice
C) three times
D) more than four times

Question 9

" Prisoners of paradise" is a label applied to elders in California

A) who have obtained reverse mortgages.
B) who have purchased single-family homes in retirement communities.
C) whose rent has escalated.
D) who purchase homes in areas at high-risk for hurricanes.

Question 10

In 1994,about _______ percent of all income received by older people was from Social Security.

A) 20
B) 30
C) 40
D) 50

Question 11

______ of elderly blacks and elderly Hispanics were poor in 1996 compared to one of every 11 elderly whites.

A) 1/8
B) 1/4
C) 1/3
D) 1/2

Question 12

In a reverse mortgage,the borrower

A) pays only interest, not principle, for the years of the loan.
B) increases indebtness while drawing down the equity in the home.
C) makes smaller interest payments in the last years of the loan.
D) makes a lump sum payment to pay off the loan.

Question 13

Your text estimates that without Social Security about ______ of all elderly would be in poverty.

A) 1/5
B) 1/4
C) 1/3
D) 1/2

Question 14

Compared to a home owner,a home renter is

A) less affected by inflation.
B) has a higher income.
C) is more subject to involuntary moves.
D) is better able to determine their living conditions.

Question 15

The poverty rate for persons age 65 and over

A) increased between 1970 and 2000.
B) is below the poverty rate for children.
C) is slightly less than the rate for persons 18 to 64.
D) was 24.6 percent in 2000.

Question 16

A major reason for the reduction of elders in poverty over the last two decades is

A) more older women are now covered under pension plans and Social Security.
B) fewer older women are single.
C) Social Security payments have remained constant.
D) Social Security payments are higher due to automatic cost of living adjustments.

Question 17

Social Security began in

A) 1920 to provide income for elderly farmers who could no longer work their farms.
B) 1935 to counteract the effects of the Great Depression.
C) 1945 to guarantee income for elderly war veterans.
D) 1972 to provide income for elderly widows.

Question 18

In the current Social Security program,all of the following are true EXCEPT
A) a person's Social Security payroll taxes are held and invested until the day he or she retires.

A) most young people today will collect less than they and their employers put into the system.
C) Americans have been receiving more than their employers paid into the system.
D) Social Security benefits rise with the cost of living.

Question 19

All of the following are changes that have been made to help restore the fiscal health of the Social Security system EXCEPT

A) Social Security tax rates have increased.
B) The earliest eligibility age (for early retirees) has been increased.
C) The percent reduction for early retirees has been increased.
D) The eligibility age for full benefits has been gradually increased.

Question 20

Which of the following categories of elderly are LEAST likely to be in poverty?

A) women
B) ethnic minorities
C) the oldest old
D) men

Question 21

The U.S.poverty threshold is determined by estimating a minimally adequate food budget for a household and multiplying it by a factor of

A) two.
B) three.
C) four.
D) five.

Question 22

Current Social Security laws financially favor

A) elderly salaried workers.
B) two-earner households.
C) divorced women over divorced men.
D) single-earner families.

Question 23

The idea of privatizing Social Security would

A) make payments towards retirement optional.
B) invest mandatory payments into the stock market.
C) allow workers to invest their Social Security taxes into a self-employed business.
D) put mandatory payments into a savings account with a private banking institution.

Question 24

__________ account for the greatest percentage of the Medicaid budget.

A) Dependent children
B) Women age 45-65
C) Men age 45-65
D) The elderly

Question 25

Problems of unequal access of people in worsening health have been found in the _________ model of medical service.

A) fee-for-service
B) Health Maintenance Organization (HMO)
C) Preferred Provider Organization (PPO)
D) Provider-Sponsored Organization (PSO)

Question 26

Which of the following are covered by Medicare?

A) dental care
B) eyeglasses
C) hearing aids
D) acute hospital care

Question 27

In the _________ model of medical service,a Medicare beneficiary can visit any doctor specified in the health care network or a doctor outside of the network for an additional cost.

A) fee-for-service
B) Health Maintenance Organization (HMO)
C) Preferred Provider Organization (PPO)
D) Provider-Sponsored Organization (PSO)

Question 28

Medigap policies are

A) government subsidized insurance policies for the elderly to cover long-term nursing home care.
B) supplemental government-funded insurance for the oldest-old (age 80 and up).
C) policies sold by private companies to provide health care protection that Medicare does not provide.
D) insurance policies provided by the government for people 55 years of age and older who choose to retire but do not yet qualify for Social Security.

Question 29

Congress established Medicare to pay for

A) most of the medical expenses due to long term, chronic conditions.
B) all of the cost of preventive health care checkups.
C) a portion of medical expenses due to the most serious illnesses.
D) all medical expenses of the elderly, blind, and disabled.

Question 30

Supplemental Security Income (SSI)

A) provides a minimum income for elders, the blind, and the disabled.
B) does not vary by state.
C) eligibility is based solely on income, not assets.
D) allows for special circumstances, such as illness of a spouse.

Question 31

Under the Social Security law,to receive her husband's benefits a woman must have been married to him at least

A) 5 years.
B) 10 years.
C) 15 years.
D) 20 years.

Question 32

Supplemental Security Income (SSI)is paid by funds from

A) counties.
B) states.
C) the U.S. Treasury.
D) Social Security

Question 33

Medicaid is more likely than Medicare to pay for

A) eyeglasses.
B) dental care.
C) long-term nursing home care.
D) All of these choices.

Question 34

Compared to 401(k)s and Individual Retirement Accounts (IRAs),traditional company pensions

A) transfer more of the retirement costs directly to the individual employee.
B) guarantee retirees a specific income based on salary and length of employment.
C) are more likely to be tied to the stock market.
D) vary their payments according to current interest rates.

Question 35

About twenty-five percent of the nation's hospitals have "boarder elderly" who

A) remain in hospitals because they cannot find affordable nursing home accommodations.
B) suffer from chronic illnesses that require more intensive care than nursing homes can provide.
C) elderly hypochondriacs who are not really sick but think they are.
D) elderly patients who return to the hospital frequently for treatment of acute conditions, such as flu and pneumonia.

Question 36

Under the current Social Security system,a person is not penalized for wages earned after age

A) 62.
B) 65.
C) 68.
D) 70.

Question 37

In a provider-sponsored organization (PSO)

A) Medicare pays only when the organization submits an eligible Medicare expense of a member.
B) Medicare pays the health plan a monthly fee for each recipient.
C) all unused Medicare money is returned to Medicare at the end of the year.
D) the government directly administers health care to Medicare patients.

Question 38

Elders spend about ________ percent of the money used for health care.

A) 15 to 20
B) 20 to 25
C) 25 to 30
D) 30 to 40
E) 40 to 50

Question 39

Medicare is characterized by all of the following EXCEPT

A) it has a premium.
B) it includes coverage of most parts of the body that change with age.
C) it is part of the Social Security system.
D) it is the main insurer of persons over 65 years of age.

Question 40

Part A of Medicare is ________ insurance.

A) acute medical care
B) hospital
C) long-term care
D) emergency medical care

Question 41

In the early 1900s ,elders tended to invest in saving accounts,bonds,and stocks,which were profitable until the recession hit and lowered the interest rates.

Question 42

One great incentive of having Individual Retirement Accounts (IRAs)and 401(k)s for workers who change jobs is that

A) the plans are portable
B) they can receive double pay.
C) there are no penalties of cashing out early.
D) they can continue their plan at the previous job and still work at the new one.

Question 43

Relative deprivation occurs when

A) a person has less resources than someone else.
B) a person's present resources are less than they were in the past.
C) a person is dissatisfied with his resources compared to what he thinks he deserves.
D) All of these choices.

Question 44

Aging has been considered to be a dimensional phenomenon,

Question 45

It is projected that by the middle of this century,non-Hispanic whites will constitute about 67% of the older population.

Question 46

Which of the following is a factor that contributes to inadequate pension benefits?

A) leaving a job before 30 years of service and job changes
B) involuntary job interruptions, such as layoffs
C) gender
D) age

Question 47

Many working women receive none of the money they paid into Social Security.

Question 48

The United States was the first nation to introduce a major public system of social insurance against old-age dependence.

Question 49

The poverty rate is highest for which of the following categories of elders?

A) elders living in metropolitan areas
B) white women over 75 years of age
C) Hispanics living alone
D) African American women

Question 50

An SRO hotel is a

A) cheap, single-room occupancy hotel, apartment building, or rooming house.
B) government subsidized housing facility for people in poverty.
C) motel or hotel that offers kitchenettes and laundry facilities.
D) temporary shelter for the homeless offered by city missions.

Question 51

Rural elders in poverty

A) are more likely to live in the northeastern U.S.
B) tend to have higher incomes than the urban elders.
C) are more satisfied with their lives than urban elders.
D) have more access to medical services.

Question 52

"Economically vulnerable" is considered to be an economic state that creates a cohort of older adults which social services cannot assist.

Question 53

A study of homeless in the Bowery skid-row area of New York found

A) most lived on the street.
B) most had only recently arrived in New York City.
C) over half had lived at their current skid-row address less than 6 months.
D) about half had been living on the streets for 3 years.

Question 54

The percentage of income spent on housing in 2000 was higher for younger people than for older people.

Question 55

A good education contributes to income and wealth during the elderly years.

Question 56

The culture of poverty refers to

A) social networks of the homeless.
B) the hopelessness and despair in poverty subcultures.
C) deprivation compared to someone else's success.
D) norms condoning thievery among the street people.

Question 57

An income tax levied on higher income Social Security beneficiaries affects the more well-to-do who invest in dividend stocks.

Question 58

Which of the following is LEAST likely to be an issue for urban older adults according to your text?

A) pollution
B) transportation
C) housing
D) animal control

Question 59

A reverse mortgage is only of value to those elderly who wish to remain in their home as long as possible.

Question 60

Social Security was designed to provide the total income of aged people.

Question 61

What are the current problems with the governments Medicare and Medicaid systems?

Question 62

Most Medicare beneficiaries use the traditional fee-for-service medical care.

Question 63

The poorest elderly frequently were from the middle- or upper-classes.

Question 64

Why are elderly women more likely to be in poverty than elderly men?

Question 65

Why is the Social Security system at risk for future bankruptcy? What are the policy options to help keep the Social Security system solvent?

Question 66

Why do some workers,after a lifetime of labor,have no pension or inadequate pensions in their later years?

Question 67

Briefly explain how the Social Security system works.If you were designing the Social Security Act,what kinds of provisions and benefits would you give to elders compared to what they receive now?

Question 68

Contrast the problems of the urban and rural poor elderly. How do their attitudes differ?

Question 69

Subjective feelings have allowed some individuals to be satisfied with low income,while others are dissatisfied with higher incomes.

Question 70

Medicare,when combined with Medicaid,will cover all medical expenses when one is over age 65.