Financial Literacy Mid-Term Study Guide

Front

What is the primary source of government revenue?

Back

Taxes are the primary source of government revenue.

Front

What type of taxes is indicated on a W-4 form?

Back

Federal Taxes are indicated on a W-4 form.

Front

If Miguel's annual salary is $36,000, what is his monthly income?

Back

$3,000 is Miguel's monthly income.

Front

How much does Aram earn for assembling 180 gadgets at $1.50 each?

Back

Aram earns $270 for assembling 180 gadgets.

Front

What distinguishes Social Security from Medicare?

Back

Social Security provides retirement income, while Medicare offers health insurance.

Front

What is the purpose of taxes?

Back

Taxes are used to fund government operations and public services.

Front

What is a W-4 form used for?

Back

A W-4 form is used by employees to indicate their tax withholding preferences.

Front

How do you calculate monthly income from an annual salary?

Back

Monthly income is calculated by dividing the annual salary by 12.

Front

What is the formula to calculate total pay based on hourly wage and hours worked?

Back

Total pay = Hourly wage x Hours worked.

Front

What is the difference between gross income and net income?

Back

Gross income is the total earnings before deductions, while net income is the amount after deductions.