Economic Concepts Quiz

Sources of income includes: Wages, Rentals, Interest, Capital, profits, Entrepreneurship

• Wages, Rentals, Interest, Capital, profits, Entrepreneurship

• Wages, Salaries, Dividends, Royalties, Entrepreneurship

• Rentals, Interest, Dividends, Capital, Entrepreneurship

• Wages, Interest, Royalties, Capital, Profits

Exemptions are also called _________________. How does exemptions work? Used to reduce amount of taxed income

• Deductions

• Credits

• Allowances

• Exclusions

The degree of ease in which assets can be sold _______________________

• Liquidity

• Volatility

• Profitability

• Stability

Discretionary Income is also known as _____________________. Discretionary income is not allocated for _____________ ________________

• Disposable Income

• Mandatory Expenses

• Fixed Costs

• Essential Spending

The US Currency has value even though it is not tied to a commodity because:

• It is backed by gold reserves.

• It is accepted as a medium of exchange and has trust.

• It is tied to the value of oil.

• It is printed in limited quantities.

Who is hurt the most with inflation?

• Consumers with fixed incomes

• Wealthy investors

• Exporters

• Government employees

Who is hurt the least with inflation?

• Borrowers with fixed-rate loans

• Savers with fixed interest accounts

• People on fixed incomes

• Workers with wages that do not increase

Determine/Formula to calculate Net-Worth

• Assets - Liabilities

• Income + Expenses

• Assets + Liabilities

• Income - Expenses

Liabilities are defined as:

• Assets owned by a company

• Financial obligations or debts

• Revenue generated by a company

• Equity held by shareholders

Your Pay rate is $12 an hour, What would your overtime rate be? _________

• $18 an hour

• $15 an hour

• $20 an hour

• $24 an hour