All of the following are potential benefits of defined contribution plans EXCEPT:
A) clear ownership rights to the balances of their 401Ks
B) lower risk for employees
C) if the employee's investments are profitable, the employee can have high income during retirement
D) contributions to traditional 401Ks are tax deductible
B
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How does real gross domestic product (GDP) differ from nominal GDP?
A) Nominal GDP can be used to directly compare the amount of output produced from year to year, while real GDP cannot be used for such comparison. B) Nominal GDP controls for price changes, while real GDP does not. C) Real GDP controls for price changes, while nominal GDP does not. D) There is no difference between nominal GDP and real GDP.
Refer to the scenario above. Which of the following problems is most likely to arise in this case?
A) Adverse selection B) Moral hazard C) The tragedy of the commons D) The free-rider problem