Chapter 8 lesson 1

What is Gross Income?

• The amount a person owes in taxes at the end of the fiscal year

• The amount you earn after taxes and other payroll deductions

• The amount you earn before taxes and other payroll deductions

• The total amount of debt a country owes to companies and other countries

Which of the following best defines Net Income?

• The amount you earn before taxes and other payroll deductions

• The amount a person earns after payroll taxes and other deductions are taken out

• The smallest amount that employers can legally pay their employees per hour of work

• A fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly

What is Deficit Spending?

• The total amount of money earned from investments

• The amount of tax a country owes to its citizens

• Spending more than you earn, funded by borrowing rather than by taxation

• The representation of stocks, bonds, currencies, mutual funds, etc., on paper

What is National Debt?

• The amount of money saved by the government for future use

• The total amount of debt a country owes to companies and other countries

• The income generated by the work someone performs

• The smallest amount that can be paid to an employee per hour of work

Which type of income requires little to no effort to maintain it?

• Earned Income

• Wage

• Passive Income

• Salary

According to the text, what are the two certainties in life mentioned by Benjamin Franklin?

• Income and happiness

• Death and taxes

• Wealth and health

• Success and failure

What are the two ways mentioned in the text that you'll personally feel the impact of taxes?

• Taxes on the money you earn and taxes on the money you inherit

• Taxes on the money you earn and taxes on the money you spend

• Taxes on the money you save and taxes on the money you invest

• Taxes on the property you own and taxes on the money you earn

How is gross income generally determined?

• By the total amount of money you spend in a given pay period

• By the total amount of money you save in a given pay period

• By the total amount of money you earn in a given pay period

• By the total amount of taxes you pay in a given pay period

What term is used to describe the amount of money left in your paycheck after all withholdings or deductions are taken out?

• Gross income

• Net income

• Take-home pay

• Disposable income

What has become less common for employers to provide to their employees today?

• Direct deposit

• Physical paychecks

• Electronic transfers

• Pay stubs