The difference between a trade-off and an opportunity cost is:

• A trade-off involves a choice between two or more options, while opportunity cost is the value of the next best alternative foregone.

• A trade-off is the cost of an opportunity, while opportunity cost is the benefit of a trade-off.

• A trade-off is always monetary, while opportunity cost is always non-monetary.

• There is no difference; they are the same concept.

If you work 20 hours at $15 per hour, what's your gross pay?

• $200

• $250

• $300

• $350

What percentage do self-employed individuals pay in total FICA taxes?

• 12.4%

• 15.3%

• 7.65%

• 10.2%

Match each word or phrase with the correct description.

• Variable Expenses

• These remain the same each period

• Fixed Expenses

• income received from employment

• Earned Income

• These vary from month to month

Organize these options into the right categories

Groups:

(a) Fixed Expenses

,

(b) Variable Expenses

• clothing
• rent

• dining out
• car payment

• groceries
• insurance
• loan payments
• entertainment

Income tax is a tax levied on:

• Goods and services

• Property

• Income of individuals and businesses

• Imports and exports

The organization that manages federal income taxes is:

• Federal Reserve

• Internal Revenue Service

• Department of Treasury

• Social Security Administration

A tax return is:

• a document containing the information used to calculate taxes owed

• a mandatory payment to the government.

• a type of investment account.

• a financial statement issued by banks.

What is gross income?

• The total revenue before expenses are deducted

• The net profit after all expenses

• The amount of tax paid

• The total expenses incurred

What is taxable income?

• Income that is subject to tax by the government.

• Income that is exempt from all taxes.

• Income that is only taxed at the state level.

• Income that is only taxed at the federal level.