Deck 9: Finances and Lifestyles

Question 1

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.

Answer 1

B

Question 2

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.

Answer 2

B

Question 3

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

A) 50
B) 65
C) 85
D) 72

Answer 3

D

Question 4

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.

Question 5

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

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

Question 6

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 7

The term "house rich, cash poor" implies

A) that you own a big house
B) you have a higher income
C) that you have equity in your home, but little money in the bank
D) that you are unable to sell your home.

Question 8

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 9

The poverty rate for African American women living alone is .

A) 30%
B) 40%
C) 45%
D) 50%

Question 10

In 2010, the percentage of persons age 65 and over living in poverty

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

Question 11

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.
B) 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 12

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 13

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 14

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

Question 15

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

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

Question 16

Contributions to Social Security

A) are made only by the worker
B) are made only by the employer
C) are made by the worker and employee in equal amounts
D) are guaranteed to support the elder in later life

Question 17

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 18

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 19

It is estimated that in 2007, percent of elders owned their own homes free and clear

A) 26
B) 45
C) 68
D) less than 10

Question 20

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

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

Question 21

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 22

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 23

The group less likely to experience poverty is

A) single, widowed or divorced women
B) ethnic minorities who live alone
C) non-Hispanic older white men over age 65
D) the oldest old

Question 24

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 25

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 26

In order to qualify for Medicaid, you must

A) be either categorically eligible or medically needed.
B) meet strict income requirements.
C) complete a detailed application process and "qualify" for aid.
D) all of the above

Question 27

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 28

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 29

The following is true of income distribution in late life
A) more Caucasian women live in poverty than men

A) older non-Hispanic white men are more likely to live in poverty
B) ?there is only minimal difference in wealth distribution between gender
B) Hispanic women are less likely to live in poverty

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

account for the greatest percentage of Medicaid subscribers

A) Dependent children
B) Women age 45-65
C) Men age 45-65
D) Men and women over age 65

Question 32

Part A of Medicare is insurance.

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

Question 33

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 34

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 35

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 36

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 37

Which of the following are covered by Medicare?

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

Question 38

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 39

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 40

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 41

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

Question 42

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

Question 43

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 44

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

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

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 47

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 48

Aging has been considered to be a dimensional phenomenon,

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

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

Question 51

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

Question 52

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 53

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

Question 54

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 55

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 56

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

Question 57

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

Question 58

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

Question 59

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 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

What are the current problems with the government's Medicare and Medicaid systems?

Question 66

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

Question 67

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

Question 68

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?