50
QuizMultiple Choice

Planning for the Cost of College — Unit test

Question 50 • Personal Finance - SC 26-27 (For Credit)

Oscar claims that employee benefits have little impact on lifetime income so one should only consider a job with the largest salary. Which statement about his claim is true?

Answer
A
He is correct because a larger salary would allow one to save more money for retirement.
B
He is correct because benefits have no monetary value to an employee even though the employer may pay for them.
C
He is incorrect because health insurance reduces medical expenses, freeing up more income for long-term savings such as retirement.
D
He is incorrect because the employer gives the money for benefits directly to the employee so the employee can use the money as he wishes.

Explanation

Employee benefits can have real financial value even when they are not paid as salary. Health insurance can reduce what an employee pays for medical care, leaving more income available for other goals, such as retirement savings. Therefore, Oscar is incorrect: choosing a job based only on its salary can overlook valuable benefits.

AI-written and checked against the verified answer.

Previous
Next