Economics Unit 3 Retest

Identify the source of each type of income.

Employment

• capital gains

• Interest

• Wages

• Stocks

Identify the source of each type of income.

SALES OF STOCK INVESTMENTS

• capital gains

• Interest

• wages

• Savings

Identify the source of each type of income.

SAVING ACCOUNTS

• Capital Gains

• Interest

• Wages

• Stocks

What is one benefit of having a Health Savings Account (HSA) even though it reduces an individual's take home pay?

• Interest or other earnings on the assets in the account are tax-free.

• The employee can claim a double tax deduction for contributions made to the HSA.

• Contributions made by the employer are included in the employee’s take-home pay.

• The lower limit for contributions keeps the take home pay from being heavily impacted.

Milo’s total income is $4,687.50 per month from his teaching job. He also makes $150 a month tutoring students after school. He contributes $300 a month to his 401K and pays $75 a month in interest on his student loan. He pays $441 a month in taxes.

According to the information above, Milo’s _________

gross income

is $4,837.50

Chase received $500.00 for his birthday. His car needs new tires soon, which will cost $750, and he has been saving money toward that goal. He also serves as a representative on the student council and is the chairman of the food drive. Chase wants to contribute $100.00 to the food drive.

 

He ultimately decided to save $450.00 for tires and donate $50.00 to charity.

 

Why is this the best economic choice for Chase?

• It leads to neither goal being reached, but it is the most he could have donated.

• It ensures the charity reaches its target and makes sure no taxes need to be paid.

• It provides him enough money for the tires and meets his goal for donating to charity.

• It allows him to prioritize saving for the tires while also helping his charitable activity.

Mark wants to buy a hoodie from Cliff, who lives in another state. They agreed on the price and Cliff will mail the hoodie after he receives the payment. 

• It will better serve Mark because he will be able to avoid out-of-state fees.

• It will help Mark because the transaction will not be included in his budget.

• It will better protect Mark because it is more secure than other forms of exchange

Jack is a college freshman. Due to his limited income, he has a strict budget that he cannot exceed. He has access to checks, a credit card, and cash. Jack needs to buy groceries for the week. 

 

Why would purchasing groceries with cash be the best option for him?

• 
  He can put more money in his budget for groceries

• He will be able to maintain a better credit score.

• .

  He can receive cashback reward points.

• He will be able to keep track of his spending more accurately.

A person needs to buy something, but they do not have enough cash to pay for it.

What do you use?

• Cash

• Credit card

• Mobile payment app

• bitcoin

A person is selling a used piece of furniture on an online marketplace to a stranger, and wants a secure, safe transaction.

• Cash

• Credit Card

• Mobile app payment