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1 | |
Benefits are a logical part of employees' total compensation package but differ in a unique way from base pay because: |
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| | A) | they are subject to more rules and greater governmental regulation. |
| | B) | they can quickly become institutionalized and obligatory |
| | C) | they are difficult for employees to grasp and value due to complex array of choices. |
| | D) | All of these. |
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2 | |
When employers spend large sums of money on benefits but employees do not understand the benefits or attach much value to them, the return on employers' benefits investment will be fairly dismal. |
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| | A) | True |
| | B) | False |
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3 | |
All of these factors have contributed to the tremendous growth of employee benefits except: |
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| | A) | laws passed as part of Roosevelt's New Deal. |
| | B) | wage and price controls instituted during World War II. |
| | C) | the cost advantage that individuals typically realize over groups in negotiating benefit rates. |
| | D) | favorable tax treatment of benefits programs. |
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4 | |
The is the percentage of additional earnings that goes to taxes. |
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| | A) | marginal tax rate |
| | B) | equitable tax rate |
| | C) | annual tax refund |
| | D) | minimal tax rebate |
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5 | |
Benefits can be grouped into different categories of employee support programs, and all of the following are a type of benefit except: |
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| | A) | dental care. |
| | B) | annual cost-of-living increase to base salary. |
| | C) | long-term disability insurance. |
| | D) | paid vacation. |
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6 | |
Which of the following is an original provision of the Social Security Act of 1935? |
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| | A) | survivor's insurance. |
| | B) | old-age insurance. |
| | C) | disability insurance. |
| | D) | hospital insurance. |
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7 | |
Social security insurance was designed to mainly offset lost income during times of involuntary unemployment. |
|
| | A) | True |
| | B) | False |
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8 | |
Unemployment insurance is one type of benefit program that is: |
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| | A) | designed to provide transition income when a citizen quits one job to search for a different job. |
| | B) | based on the health insurance act (i.e, COBRA) of 1985. |
| | C) | based on 1950's taxation laws for small farm businesses in rural USA counties. |
| | D) | based on the Social Security Act of 1935. |
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9 | |
Unemployment benefits are typically about __________ percent of a person's earnings and last for __________. |
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| | A) | 50; 26 weeks |
| | B) | 75; 1 year |
| | C) | 100; 2 years |
| | D) | 25; 4 weeks |
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10 | |
The four major categories associated with worker's compensation benefits include disability income, medical care, death benefits, and rehabilitative services. |
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| | A) | True |
| | B) | False |
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11 | |
Workers' compensation benefits fall into all of these major categories except |
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| | A) | medical care. |
| | B) | retirement benefits. |
| | C) | disability income. |
| | D) | death benefits. |
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12 | |
According to the public opinion surveys, which of these are by far the most important benefit to the average person? |
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| | A) | Retirement benefits |
| | B) | Life insurance |
| | C) | Medical insurance |
| | D) | Child-care programs |
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13 | |
Under the guidelines specified in the Employee Retirement Income Security Act, nearly all employers are legally obligated to offer and provide some form of private retirement plan to their employees. |
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| | A) | True |
| | B) | False |
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14 | |
Short-term disability insurance typically provides benefits for six months or less, at which point long-term plans take over. |
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| | A) | True |
| | B) | False |
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15 | |
Which of these acts require employers to permit employees to extend their health insurance coverage at group rates for up to 36 months following a "qualifying event" such as termination? |
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| | A) | The Fair Labor Standards Act |
| | B) | The Social Security Act of 1935 |
| | C) | The Pregnancy Discrimination Act of 1978 |
| | D) | The COBRA of 1985. |
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16 | |
A(n) plan guarantees a specified retirement benefit level to employees based typically on a combination of years of service and age as well as on the employee's earnings level. |
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| | A) | Defined contribution |
| | B) | Social Security |
| | C) | Defined benefit |
| | D) | Unemployment benefit |
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17 | |
Which of these plans puts the responsibility for wise investing on the shoulders of the employees? |
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| | A) | Defined benefits |
| | B) | Social Security |
| | C) | Defined contribution |
| | D) | Unemployment benefits |
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18 | |
Defined contribution plans promise a specific benefit level for employees upon retirement. |
|
| | A) | True |
| | B) | False |
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19 | |
The ______ guarantees employees that when they become participants in a pension plan and work a specified minimum number of years; they earn a right to a pension upon retirement. |
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| | A) | SPD |
| | B) | PBGC |
| | C) | ERISA |
| | D) | AFL-CIO |
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20 | |
About what percent of the U.S. private-sector labor force is covered by pension plans? |
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| | A) | 92 |
| | B) | 15 |
| | C) | 100 |
| | D) | 45 |
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21 | |
Which of the following countries, on average, works the most hours per year? |
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| | A) | South Korea |
| | B) | Germany |
| | C) | United States |
| | D) | France |
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22 | |
The ________ requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave for certain circumstances. |
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| | A) | Consolidated Omnibus Budget Reconciliation Act |
| | B) | Pregnancy Act |
| | C) | Americans with Disabilities Act |
| | D) | Family and Medical Leave Act |
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23 | |
Fewer and fewer U.S. companies are providing child care support to their employees. |
|
| | A) | True |
| | B) | False |
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24 | |
Employer efforts to control health care costs fall into which of these? |
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| | A) | Plan design |
| | B) | Education and prevention |
| | C) | Use of alternative providers |
| | D) | All of these. |
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25 | |
Markedly, health care costs have shown a trend of dramatic decline since the year 1996. |
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| | A) | True |
| | B) | False |
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26 | |
In the area of controlling health care expenses, the use of alternative providers such as _______ and preferred provider organizations has increased. |
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| | A) | health maintenance organizations |
| | B) | claims review organizations |
| | C) | home health care organizations |
| | D) | employee assistance organizations |
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27 | |
All of the following are ways employers use managed care to control health care costs except __________. |
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| | A) | cost shifting to employees |
| | B) | claims review |
| | C) | legal recourse channels |
| | D) | preadmission testing |
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28 | |
PPOs differ from HMOs in that PPOs do not provide benefits on a prepaid basis and employees often are not required to use the preferred providers. |
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| | A) | True |
| | B) | False |
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29 | |
_________ focus on changing behaviors both on and off work that could eventually lead to future health problems. |
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| | A) | Employee Wellness Programs |
| | B) | Health Maintenance Organizations |
| | C) | Employee Assistance Programs |
| | D) | Preferred Provider Organizations |
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30 | |
Which of these permit employees to choose the types and amounts of benefits they want for themselves? |
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| | A) | Flexible spending accounts |
| | B) | EWPs |
| | C) | Cafeteria-Style plans |
| | D) | All of these. |