Personal Finance Review

Why do we use the rational decision making matrix?

• to evaluate opportunity costs

• to examine scarce resources

• to evaluate the marginal cost & marginal benefits

• to determine the factors of production

a rational decision is when

• marginal costs exceeds benefits

• marginal benefits > marginal costs

• marginal benefits < marginal costs

• marginal revenue is lower than profits

A _________ tax, also referred to as a flat tax, impacts low-, middle- and high-income earners relatively equally. 

• regressive
• proportional
• income

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

Under a ________ tax system, individuals and entities with low incomes pay a higher amount of that income in taxes compared to high-income earners. 

• Regressive
• Progressive
• Proportional
• Flat

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

There are generally three major ways that U.S. taxpayers pay taxes: ________ tax, progressive tax and proportional tax.

• income
• sales
• regressive
• estate

Jennifer earns $400 per week and pays 10% tax on groceries costing $200 would pay $20, or 5% of their income, in taxes. In the same scenario, Janice, earning $800 per week would only spend 2.5% in taxes. Who pays more?

• Jennifer
• Janice
• Mrs. Marsh
• Yoda

Federal Income tax is a _______tax

• proportional
• flat
• regressive
• progressive

Sales tax is a ______ tax

• regressive
• progressive

Tags

CCSS.6.EE.A.2A

Which sort of tax is the income tax?

• progressive
• regressive
• proportional
• flat

Calvin has inherited $3,000 from an aunt. He wants to invest in an option that has a very low risk but still increases the amount of money. He doesn’t plan to access the money until he attends college in 3 years

• bond

• stock

• certificate of deposit

• mutual fund