Income Earning - TEST

Human Capital includes which of the following:

• The knowledge that people possess

• The skills that people possess

• The talent that people possess

• All of these answers are correct

On average, which of the following people is likely to earn the largest income?

• A person who earns a Master's degree

• A person who earns a Bachelor's degree

• A person who graduates high school

• A person with a GED

People invest in human capital by:

• going to school.

• pursuing additional training.

• developing skills.

• All of these answers are correct.

Which of the following is true of productivity :

• Productivity is measured as a ratio of output per worker per unit of time.

• More productive workers tend to earn higher incomes.

• An increase in human capital can increase productivity.

• All of these answers are correct.

The F.I.C.A. tax is used to fund:

• highways, national parks and national defense

• state highways, state parks, state troopers, and public education

• Social Security and Medicare

• street lights, fire and police protection

Gross pay is

• the amount earned over a lifetime.

• the amount earned before deductions or taxes are taken out.

• the amount received after deductions or taxes are taken out.

• computed by multiplying the number of hours by the hourly rate of pay, then subtracting federal and state income taxes.

A W-4 Form is:

• used by employers to determine the amount of income tax to withhold from employees' earnings.

• the form taxpayers must fill out if they paid more income tax than necessary and want a refund.

• is a form employers must provide to employees shortly after year-end to report annual income and withholding for the employee's tax return.

• a printed statement of the amount that an employee is paid.

Wages are

• found by multiplying an hourly pay rate by the numbers of hours worked.

• a payment people receive for providing natural resources in the market.

• an annual amount paid monthly or bi-monthly for a specified number of hours worked.

• government fees on business and individual income, activities, products or property.

Who pays FICA taxes?

• Employees pay the FICA tax.

• Employees and Employers pay the FICA tax.

• The government pays the FICA tax on behalf of workers.

• All of these answers are correct.

Overtime wage is

• based on a rate per unit

• based on working time in a week beyond the standard 40-hour work week

• the lowest hourly wage employers can pay

• payment for work