1.What makes the US Social Security pension (SS) an annuity?

It is financed by the SS Trust Fund.

It will pay benefits until 2034, approximately, and not after that.

It pays benefits to a recipient until she/he dies.

It pays benefits to a retiree unless she/he works.

The other answers are incorrect.

2.Economists estimate that USSS reduces personal saving mainly because

SS reduces the need to save for retirement.

SS reduces the need to save for emergency expenses.

SS reduces the need to save for children's education.

Answers b and c are correct.

The other answers are incorrect.

3.Which of the following gives the strongest support for the claim that US SS reduces personal savingby less than 40%?

Nearly all US saving is for retirement.

Almost no US saving is for retirement.

Nearly all US saving is precautionary.

Almost no US saving is precautionary.

Nearly all US saving is for children's education.

Almost no US saving is for children's education.

Close to half of US consumers seem to save a nearly fixed fraction of their disposible income.

4.The SS Trust Fund is expected to be depleted by 2034.If that happens and the benefit formula and payroll tax rate are not changed by 2034, then in 2035,

SS benefits will be paid, but they will be about 30% less than under the current formula.

SS benefits will be paid according to the current formula, funded by general taxes, not payroll taxes.

SS benefits will be paid according to the current formula, funded by both payroll and general taxes.

SS benefits will be paid according to the current formula, funded entirely by payroll tax.

no SS benefits will be paid.