Personal Finance Quiz

What is the difference between gross income and net income?

• Gross income is the total income earned before any deductions or taxes are taken out, while net income is the income remaining after all deductions and taxes have been subtracted.

• Gross income is the income earned from self-employment, while net income is the income earned from a regular job.

• Gross income is the income earned after all deductions and taxes have been subtracted, while net income is the total income earned before any deductions or taxes are taken out.

• Gross income is the income earned from investments, while net income is the income earned from employment.

What is the importance of filing taxes?

• Filing taxes is important because it is a legal requirement and helps fund government programs and services.

• Filing taxes is not important because the government does not use the funds effectively.

• Filing taxes is important because it helps individuals evade taxes and avoid penalties.

• Filing taxes is not important because it is a waste of time and money.

What are some common taxes on a paycheck?

• federal income tax, state income tax, Social Security tax, Medicare tax, mandatory deductions

• federal income tax, state income tax, Social Security tax, Medicare tax

• federal income tax, state income tax, Social Security tax, Medicare tax, retirement contributions

• federal income tax, state income tax, Social Security tax, Medicare tax, health insurance premiums

What is the difference between a salary and an hourly wage?

• A salary is paid monthly, while an hourly wage is paid weekly.

• A salary is only given to full-time employees, while an hourly wage is given to part-time employees.

• A salary is a fixed amount of money paid on a regular basis, while an hourly wage is based on the number of hours worked.

• A salary is determined by the employee's level of education, while an hourly wage is determined by the employee's experience.

The things you do well are your

• abilities

• aptitudes

• interests

• weaknesses

Things you like doing and that motivate you to do your best are your

• interests

• abilities

• aptitudes

• weaknesses

What are three kinds of taxes?

• Income Tax, State Tax, Health Insurance

• Property Tax, State Tax, Income Tax

• Health Insurance, Property Tax, 401K

• StateTax, 401K, Income Tax

How are Social Security and Medicare paid for?

• Through earned income of citizens taken out of gross income

• Through earned income of citizens taken out of net income

• People volunteer to contribute

• Retired people pay for their Social Security and Medicare

What do taxes pay for?

• Local libraries, schools, clothes

• Police officers, military, furniture

• Schools, police officers, roads

• Firefighters, local libraries, my car

What is sales tax?

• The property tax you pay for schools

• The state government tax on the salary you make

• The national government tax on the salary you make

• The tax on the sale of goods and services