Income Basics

What are the two primary types of income mentioned in the lesson text 'Income Basics'?

• Passive and Active Income

• Earned Income and Unearned Income

• Salary and Wages

• Investment and Savings

Fill in the blank: ______ is money an individual or business earns or receives as the result of economic activity. It includes the money earned in exchange for providing a good or service, or received from investing capital.

• Income

• Expense

• Debt

• Liability

According to the lesson text 'Income Basics,' is winning the lottery considered a real financial plan?

• True

• False

Which of the following best describes 'Earned Income'?

• Money received from investments

• Money earned in exchange for providing a good or service

• Money received as a gift

• Money won in a lottery

What is earned income?

• Money received as a gift

• Money earned from direct participation in productive activities or labor, including wages, salaries, tips, bonuses, commissions, and self-employment income

• Money inherited from family

• Money won in a lottery

Fill in the blank: A ______ is the money paid to an employee for each hour of work provided.

• wage

• salary

• bonus

• commission

The total amount of wages an employee earns depends on the number of hours worked and the wage per hour the job pays.

• True

• False

What is a minimum wage?

• The highest wage an employee can earn

• The lowest legally allowed hourly wage an employee can be paid

• The average wage in a country

• The wage paid to managers only

Employers must abide by the highest minimum wage where the employee works.

• True

• False

According to the passage, what is the federal minimum wage in the United States?

• $7.25/hr

• $15.00/hr

• $16.00/hr

• $22.50/hr