Economics Test

What is a wage?

• A wage is a payment given to an employee by an employer in exchange for work done; usually by the hour.

• A wage is a type of tax imposed on employees
• A wage is a form of punishment for employees
• A wage is a gift from the employer to the employee

What is salary?

• A fixed regular payment made by an employer to an employee for work done.
• A type of clothing
• A form of transportation
• A type of fruit

What is commission based on?

• Percentage of sales or fixed amount per sale
• Favorite color
• Number of hours worked
• Based on the weather

What is a dividend?

• A dividend is a form of insurance provided to shareholders.
• A dividend is a tax imposed on shareholders.
• A dividend is a payment made by a corporation to its shareholders and comes from stock.

• A dividend is a type of loan taken by a company.

What does it mean to invest your money?

• To invest your money means to bury it in your backyard
• To invest your money means to give it away to strangers
• To invest your money means to spend it all on luxury items
• To invest your money means to put it into financial products, real estate, or a business with the expectation of generating income or profit over time.

What is an example of a transfer payment?

• Social Security benefits
• Medicare benefits
• Income from a job
• Unemployment benefits

What is one positive thing about commission-based work?

• Limited growth opportunities
• Inconsistent income
• Lack of job security
• Higher earnings potential

What is a negative for investing money?

• Low risk of losing money
• No need for research or analysis
• Risk of losing the invested funds
• Guaranteed high returns

What is a positive of transfer payments?

• Increase in government debt
• Money is available when you need it most.

• Encouragement of laziness
• Creation of economic inefficiency

What is a negative of a wage-based income?

• Predictable financial planning
• Absence of fixed salary or regular payment
• Consistent monthly paychecks
• Guaranteed income stability