FinLit Unit 1 Exam Study Guide

Communication is one of the most important hard skills in today's workplace.​

• True
• False

The business cycle repeats every year, peaking during the Christmas shopping season.​

• True
• False

Regardless of the style used, a resume should always include personal information, education, and work experience.​

• True
• False

All types of earned income are subject to income taxes and Social Security taxes.​

• True
• False

Employers are required by law to make contributions to employee retirement accounts.​

• True
• False

​Payments received for alimony and child support are forms of unearned income.

• True
• False

Sales tax is a progressive tax because it places a greater burden on higher-income people.​

• True
• False

Employees are required to have money withheld from their paychecks for income tax, Social Security tax, and Medicare tax.​

• True
• False

As inflation rises, the real purchasing power of each dollar falls.​

• True
• False

​Economizing and optimizing are two basic strategies for rational buying.

• True
• False