Unit 2 Ch. 1 Econ Vocabulary - Influences on Income

• The ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing

• Financial security

• Financial literacy

• Financial options

• Financial frugality

Income includes all of the following EXCEPT

• money that an individual receives in exchange for providing a good or service

• money that a business receives in exchange for providing a good or service

• money that an individual or business receives through investing capital

• money that is not subject to taxation

Employee compensation that is based on the number of hours worked multiplied by an hourly rate of pay

• Wages

• Salary

• Income

• Taxes

Employee compensation quoted on an annual basis, such as $50,000 per year

• Wages

• Salary

• Income

• Taxes

Job markets are best described by the following:

• A narrow field of jobs and career choices that you have been tested for

• The wide variety of job and career choices that will be available to you when you are prepared to go to work

• The wide variety of job and career choices that can only be available to you by earning a 4-year degree

• A narrow field of jobs and career choices that have high employment options

A document that is provided with each paycheck and that shows the amount of money that the employee earned and the amount that was removed for deductions

• Paystub

• Gross Pay

• Net Pay

• Deductions

The money you earn before any deductions

• Paystub

• Gross Pay

• Net Pay

• Deductions

The money you actually get to take home and spend after deductions

• Paystub

• Gross Pay

• Net Pay

• Deductions

Cash amounts taken out of the employee’s gross wages that include taxes and contributions (like for health and retirement benefits)

• Paystub

• Gross Pay

• Net Pay

• Deductions

Which of these does NOT define taxes?

•  A required payment to a local government

• A required payment to a business or individual

•  A required payment to a state government

• A required payment to a federal/national government