PFL Unit 1

Which of the following would be a variable expense?

• Rent

• Car payment

• Gym membership

• Gas for your car

What is income?

• The next best option when making a choice

• When unlimited wants exceed limited resources

• The taxes that are paid to the federal government

• Money earned in exchange for a good or service

In theory, tips are incentive based. What does this mean?

• Tips are decided by your boss

• You can make more tips if you provide better service

• The less you work, the more you can earn

• You will get the same amount in tips, regardless of the service

How frequently do hourly wage jobs generally pay?

• Once a year

• Once per hour

• Every week or every 2 weeks

• Every month

What are dividends?

• Income that is paid per hour of work

• Income that is gained when you sell something for more than you paid for it

• Income earned when companies share profits with stockholders

• Income earned by completing a job

What is a fixed expense?

• An expense that changes frequently

• An expense that remains the same over an extended period

• An expense that covers an expected event

• An expense that coves an unexpected event

What is disposable income?

• The total income one acquires

• The amount of income one can spend BEFORE taxes are collected

• The amount of income one can spend AFTER taxes are collected

• The amount of income one earns on a given day

What is the difference between a need and a want?

• A want is something you must have to survive. A need is a luxury that would make life more comfortable

• A need is something you must have to survive. A want is a luxury that would make life more comfortable

• A want is something that everyone must have. A need is something only a few people have

• A need is something that only happens once. A want is something that happens more than once.

What is the maximum amount a bank can charge in overdraft fees?

• $10

• $150

• $500

• There is no regulated amount in the United States

What is the difference in gross pay and net pay?

• Gross pay is the amount of income before taxes. Net pay is the amount of income after taxes.

• Gross pay is the amount of income after taxes. Net pay is the amount of income before taxes.

• Gross pay is the amount of income per day. Net pay is the amount of income per week.

• Gross pay is the amount of income per month. Net pay is the amount of income per year.