Economics Review-Ga. Studies

Which of the following best describes "debt."

• money taken out of your bank account

• money that is saved for the future

• money owed to another party or a financial institution

• a tax on people's earnings

(a)   allows a customer to purchase goods and services before paying for them, based on the trust that payment will be made in the future.

Money taken out of your bank account to make a payment is a ________________________.

• credit

• debit

• investment

• debt

Income taxes are a portion of your personal income paid to the government. The more money you make, the higher your income tax payment is. This is because income tax is ____________________________.

• gross

• shrinking

• progressive

• risky

Which of the following are taxes that are withheld from your income. Check all that apply.

• sales tax

• social security tax

• medicare tax

• property tax

• income tax

"Take home" pay is the amount of your income that you are left with after taxes and other payments are withheld. Which income would you rather "take home" because it would pay you the most money?

• gross monthly income

• net monthly income

The starting point for personal money management is:

• debt

• spending

• income

• taxes

Your family will be taking a special vacation next summer to celebrate your brother's graduation. This will be an expensive trip, and your family does not want to go in debt to take the trip. The best solution is to begin

• debiting

• investing

• saving

• paying more taxes

Which of the following are fixed expenses?

• entertainment

• food purchases

• house payment / rent

• car payment

Variable expenses:

• are the same month to month

• are things like house payments and car payments

• change month to month