CyFalls Economics PFL exam review 1516

Income for retired persons in the USA who worked for a living is provided for by the government through

• social security
• income tax
• insurance
• IRA accounts

Government health care coverage for persons in the USA over 65 is called

• Medicare
• Social Security
• Affordable Care
• Obamacare

The amount of money you get in your paycheck after government and payroll deductions (insurance, etc...) is the 

• Net Monthly Income
• Gross Monthly Income

Taxes charged on clothing, cars, TV, appliances, phones, etc...

• sales tax
• Business tax
• Excise tax
• Value Added tax

Social Security funds are generated from

• property tax on what you own
• school tax based on where you go to school
• payroll tax based on income
• sales tax based on purchases

How do  Mutual  Funds create wealth?

• Pool money from investors and make a diverse portfolio
• Buy high risk stocks and bonds for high rewards
• Buy low risk stocks that don't give much return
• These are a type of savings account for personal use

If you must use a credit card, which scenario would be the wisest reason?

• Charge movie tickets at Studio Movie Grill
• Buy a new dog
• Pay for a laptop to take to college
• Buy a flat screen 60 inch TV

When you borrow money from a bank, you must pay back the loan plus...

• interest fees
• late fees
• IRA  fees

Net Monthly Income is

• Total amount you take home after govt/payroll deductions
• Total amount of money you make each month
• Amount of money left after all your bills are paid

Amount/Interest/Time =

• These are the variable that affect saving money
• These are the variable that affect your checking account
• These are the factors that affect your retirement plan