You choose to complete your homework rather than watch television so that you can earn a good grade. You made the choice with the lowest

• 1. opportunity cost

• Demand

• Scarcity

• 1. Benefit

1. Austin earns $18,000 per year. His earnings put him in the 15% tax rate. What is his tax owed?

• 1. $2,700

• 1. $15,300

• 1. $18,700

• 1. $22,000

1. Which tax uses the same rate for all income levels?

• Corporate

• Proportional

• 1. Progressive

• Regressive

1. Which label is appropriate for Column B?

• Cost

• Benefit

• Need

• Want

Which tax is paid to a third party?

• Direct
• Flat
• Income
• Indirect

Who would pay the most as a percentage of income under a progressive tax?

• Lawyer earning $110,000 per year
• Teacher earning $45,000 per year
• CEO earning $2.5 million per year
• Roofer earning $18,000 per year

What happens as your level of education increases?*

• Potential wants decrease
• Earnings potential increases
• Potential expenses decrease
• Earnings potential decreases

If an investor possesses a portfolio heavily concentrated in futures, a financial advisor would most likely suggest adding which conservative investment to diversify the portfolio?

• Certificates of deposit
• Futures
• Mutual Fund
• Stocks

If an investor possesses a portfolio heavily concentrated in bank checking accounts, a financial advisor would most likely suggest which of the following aggressive investments to diversify the portfolio?

• A money market account
• An Individual Retirement Account
• Certificates of Deposit
• Stocks

Which of these are loans to businesses or governments?

• Bonds
• IRAs
• Mutual funds
• Stocks