Financial Lit - Reading (Income

What are the three primary ways to earn income through investments mentioned in the passage?

• Interest, Dividends, and Capital Gains

• Salary, Wages, and Bonuses

• Rent, Royalties, and Commissions

• Savings, Loans, and Mortgages

How does education influence lifetime earnings according to the passage?

• Higher education typically leads to higher lifetime earnings.

• Education has no impact on lifetime earnings.

• Higher education typically leads to lower lifetime earnings.

• Education only affects job satisfaction, not earnings.

What is a real-world example of earning interest income as described in the passage?

• Depositing $1,000 in a savings account with a 3% annual interest rate.

• Buying 100 shares of Coca-Cola and receiving dividends.

• Selling a house for more than the purchase price.

• Working a part-time job and receiving a salary.

According to the passage, what is a key factor in overall happiness related to career choices?

• Job satisfaction

• High salary

• Job location

• Company reputation

What is the opportunity cost of pursuing a college degree as mentioned in the passage?

• The money you could have earned if you had worked instead.

• The tuition fees paid for the degree.

• The time spent studying instead of working.

• The cost of textbooks and materials.

Define the term: Interest

Define the term: Dividends

Define the term: Capital Gains

Define the term: Human Capital

The cost of what you give up when making a decision, such as time or money spent on education is called what?

• opportunity cost
• sunk cost
• marginal cost
• fixed cost