2. (1)

If in 2011, a woman made $50,000 on the job, $20,000 from a consulting business she operated, and $25,000 in dividends on stock she owned, she would owe old-age Social Security taxes on

	$50,000.
	$70,000.
	$87,000.
	$95,000.

3. (1)

The PIA is generated with a formula such that

	high income earners receive less than low income earners.
	high income earners receive the same as low income earners.
	higher income earners receive the same proportion of AIMA as low income earners.
	higher income earners receive more money but a lower proportion of their AIME than lower income earners.

4. (1)

Most economists accept the need for a required pension system because

	people will save less than is optimal knowing that they can rely on welfare.
	people may not have the information necessary to calculate their correct level of savings.
	economists believe that saving is good for the soul.
	people will save less than is optimal knowing that they can rely on welfare and people may not have the information necessary to calculate their correct level of savings.

5. (1)

If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save less because, as they reason it, "the government is saving for me" you would attribute this to the

	slovenly effect.
	bequest effect.
	induced retirement effect.
	asset substitution effect.