Question 1

Regarding medical plans, what is the out-of-pocket maximum?

Options :

A : The most that the member will be liable for in relation to co-insurance

B : The maximum the plan will pay if the member is covered by another insurance plan

C : The limit the member will be required to pay at each doctor visit

D : The lifetime limit for benefits to any one employee

Answer: A

Question 2

What information do EEO posters provide to employees?

Options :

A : Various federal minimum wage rules

B : Employee rights under the H-2A Program

C : Laws and procedures for filing complaints

D : Laws and rules for employee polygraph protection

Answer: C

Question 3

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

Options :

A : It remains the same.

B : It decreases because variable costs are increasing.

C : It increases at the same rate as variable costs.

D : It becomes increasingly higher as revenues increase.

Answer: D

Question 4

Who are you most likely to hear from if there are questions about an employee’s compensation?

Options :

A : The employee

B : A concerned co-worker

C : The employee’s manager

D : The employee’s department head

Answer: C

Question 5

Which of the following statements best describes defined contribution (DC) plans?

Options :

A : They require complex actuarial calculations and assumptions.

B : The benefit is based on a formula that considers pay and service.

C : They generally provide better benefits to employees with longer service.

D : The employee assumes the risk for the investments.

Answer: D

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