Payroll Basics Quiz

What is "Gross Pay"?

• The amount an employee is paid after deductions and taxes

• The amount an employee is paid before deductions and taxes

• The amount an employee is paid only for overtime

What are "Deductions" in a paycheck?

• Money added to your paycheck for extra work

• Money taken out of your paycheck to pay for benefits and taxes

• Money given as a bonus for good performance

What is Pre-Tax Income?

• The money left after paying income taxes.

• The amount an employee actually takes home.

• The total amount before any deductions.

What is Post-Tax Income?

• The amount before any deductions.

• The money left after paying income taxes.

• The total salary including bonuses.

What is one way to earn more according to your Earning Notes?

• Work longer hours

• Be more desirable to employers

• Spend less money

Which of the following is a way to be more desirable to employers?

• Have a rare skill set or qualification

• Work for free

• Move to a different city

What is another way to maximize your income mentioned in the material?

• Choose a career that's in high demand

• Save all your earnings

• Work multiple jobs

How can unions raise wages above the equilibrium?

• Through collective bargaining and strikes

• By increasing taxes

• Through government subsidies

What percentage of your salary do unions typically take as membership fees?

• 5-10%

• 10-15%

• 1-2%

What does Dr. Gregory Mankiw specialize in?

• Information economics

• Culinary arts

• Music theory