Unit 3 - Earning and Budgeting CFA

What is the acronym for the Rational Decision Making Model?

• PASSED

• PROBLEMS

• PACED

• PAGOMN

What are the steps in the PACED decision-making model?

• define the problem, act on the problem, choose possible, solutions, and execute the decision

• define the problem, list alternatives, choose possible solutions, evaluate alternatives, and make a decision

• prepare the model, align the model, choose possible solutions, evaluate alternatives, and make a decision

Money awarded to students based on achievement, does NOT have to be repaid

• Grant

• Loan

• Work Study

• Scholarship

Money borrowed that has to be paid back with interest

• Grant

• Loan

• Work Study

• Scholarship

Which tax is the money added to the cost of items or services?

• Payroll taxes

• Income taxes

• sales taxes

• property taxes

What is progressive tax?

• Land, buildings, and other structures

• If someone dies, that person’s heirs may have to pay taxes on property left behind

• Takes a larger percentage from higher-income groups and a lower percentage from lower-income groups

• Is based on the portion of the estate received by an individual

What are Regressive taxes?

• Is based on the portion of the estate received by an individual

• Takes a larger percentage from higher-income groups and a lower percentage from lower-income groups

• Takes a larger percentage of income from lower-income groups than high-income groups

• Are federal taxes on the wealth a person leaves behind

What are Sales Taxes?

• Are taxes collected on most any product sold in a particular state

• Are federal taxes on the wealth a person leaves behind

• Are sales taxes on “luxury” items

• Takes a larger percentage of income from lower-income groups than high-income groups

Employers pay 6.2% of their earnings to social security up to the tax cap

• Progressive

• Regressive

• Proportional

A Salary is...

• A person's weekly income

• A person's yearly income

• A person's monthly income

• A person's fortnightly income