Personal Finance Final Review

Which is an example of opportunity cost?

• Angie chose to buy a dress instead of paying her school fees. Her school fees were the opportunity cost.

• Angie bought a dress on sale and also bought shoes. The shoes were her opportunity cost.

• Angie bought a cheaper dress so she could pay her school fees. The school fees were her opportunity cost.

Which of the following products have an imposed excise tax?

• Car
• Computer
• Gasoline
• Groceries

The government uses money from taxes to:

• finance the Internal Revenue Service

• encourage private enterprise

• establish food networks

• provide goods and services for the public

What is a fixed expense in a budget?

• an expense that changes each month

• an expense that changes each year

• an expense that stays the same

• an expense that needs to be adjusted

Joan's income is $2800 and her expenses are $1927. What is her discretionary income?

• $4727

• $1927

• $873

• $2000

A salaried worker would be compensated by which of the following?

• Yearly income of $40,000 divided into 24 equal payments
• Weekly income based on $19 hourly rate
• Bi-monthly income based on a base rate with tips
• Weekly payments made with cash

Deductions taken from a person's paycheck include ______________________________.

• Net pay, FICA, and employee benefits
• Regressive taxes, gross pay, and city withholding tax
• Progressive taxes, gross pay, and medical
• Federal withholding tax, state withholding tax, and FICA (Social Security and Medicare)

Working 40 hours a week with a regular salary and benefits is which source of income?

• Commission

• Consignment

• Full Time Job

• Part Time Job

Which payroll deduction is for retirement and disability benefits?

• Medical insurance

• Federal income tax

• Life insurance

• Social security tax

If Jaryn has more dependents than Xavier on their W-4, what will this likely mean for Jaryn's paycheck?

• Jaryn will pay more in taxes than Xavier.

• They will both pay the same amount of taxes.

• Jaryn will pay less in taxes than Xavier.