Final Review

Employment offers

• Capital Gains

• Interest

• Wages

Sales of Stock Investments provide

• Capital Gains

• Interest

• Wages

Savings Accounts

• offer Capital Games.

• Interest

• Wages

What is the difference between profits and wages?

• Firms pay wages to workers, while business owners earn provits by selling goods.

• Workers earn profits on an hourly basis, while wages are fixed payments to managers.

• Firms pay profits to workers, while business owners earn wages by increasing revenue.

• Workers earn wages after deducting resource costs while profits are paid to shareholders.

What is a benefit of having a Health Savings Account?

• Interest or other earnings on the assets in the account are tax-free.

• The employee can claim a double tax deduction for contributions made to the HSA.

• Contributions made by the employer are included in the employee's take-home pay.

• The lower limit for contributions keeps the take home pay from being heavily impacted.

Net income is achieved by

• Subtracting all deductions from gross pay.

• Adding all deductions to our gross pay.

• Subtracting our income tax only from gross pay.

• Adding income tax to our gross pay

Which degree is most likely to make the highest earnings?

• Doctoral Degree

• Bachelor's Degree

• Associate's Degree

• High School Diploma

Rob bought an old car to restore and sell as a money-making project. He spent $5,000 buying the car and expects to spend $7,000 on restoration. He has a fulll-time job, so he only works on the car duirng evenings and weekends. Other similar restored vehciles have sold for $25,000.

What is the opportunity cost of Rob's project?

• He will lose $5,000

• He will lose the value of this labor.

• He will miss free time for other activities

• He will pay taxes on $25,000 if he sells the car for that amount.

A family has interited $250,000 and 150 acres from a family estate. They would like to support their local library, but they also want to save some of the money to make sure their young children have money they can use later in life.

• Sell the land to fund a tirp.

• Set up a trust fund for their children.

• Determine the value of the land before selling.

• Donate most of the inheritance to the libary.

A person needs to buy something, but they do not have enough cash to pay for.

Best form of payment would be

• Cash

• Credit Card

• Mobile Home App