Future Business Leaders of America (FBLA) Business Law Practice Exam

What government program provides continuing income to workers and their dependents when earnings stop due to retirement, disability, or death?

1. Medicare

2. Unemployment Insurance

3. Social Security

4. Pension Fund

The correct answer is: Social Security

The government program that provides continuing income to workers and their dependents when earnings stop due to retirement, disability, or death is Social Security. This program is a federal initiative designed to ensure that individuals who have worked and contributed to the Social Security system receive financial support in various situations that may impact their ability to earn income. Social Security benefits play a crucial role in providing financial stability for retirees who have reached a certain age and have ceased working, as well as for individuals who become disabled and can no longer work, and for the survivors of deceased workers who were eligible for benefits. It operates by collecting payroll taxes from current workers, which are then used to pay benefits to those who qualify, fostering a type of social safety net for the population. Other options like Medicare specifically address healthcare coverage for individuals over a certain age or with disabilities, while unemployment insurance is a program that assists individuals who are temporarily out of work, and pension funds are typically employer-sponsored retirement plans that provide benefits to employees after they retire. Each of these programs serves a different purpose and does not encompass the full range of protections provided by Social Security.