Understanding Income and Wages

What is the term used to describe the money earned from work or investments?

• Expense

• Income

• Debt

• Savings

Which of the following best describes a salary?

• A fixed regular payment, typically paid on a monthly or biweekly basis, but often expressed as an annual sum

• Payment received for each hour worked

• Money received from selling goods

• A one-time payment for a specific task

If a person earns $15 per hour and works 40 hours a week, what is their weekly wage?

• $400

• $500

• $600

• $700

Which of the following is NOT considered a form of income?

• Salary

• Interest from savings

• Lottery winnings

• Grocery expenses

If an employee's annual salary is $48,000, what is their monthly salary before taxes?

• $3,000

• $3,500

• $4,000

• $4,500

What is the difference between salary and wage?

• A salary is based on the hours you work, and a wage is not.

• A wage is an amount that is paid for each hour, and a salary is a set income paid regularly.

• A wage is income for very experienced workers.

• They are the same types of income.