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Econ.U2.Review.Pt1

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following qualifies as an employer paid deduction on a paystub?

a)

Meal reimbursement

b)

Federal income tax

c)

Medicare tax

d)

State income tax

2.

Which of the following qualifies as solely an employee paid deduction on a paystub?

a)

401k contributions

b)

Local income tax

c)

Medicare tax

d)

Social Security tax

3.

Allowances, gifts, and wages are examples of:

a)

income

b)

expenses

c)

debt

d)

savings

4.

Your car payment, groceries bill, and your tab at the salon are examples of:

a)

debt

b)

expenses

c)

savings

d)

income

5.

Death, injury, or illness--or the basis of your insurance claim- is referred to as:

a)

policy

b)

loss

c)

coverage

d)

premium

6.

If you own the vehicle you drive, your vehicle is considered a/an:

a)

liability

b)

expense

c)

income source

d)

asset

7.

If you are on a limited budget, it is best to:

a)

choose an insurance plan with a low deductible and budget in the monthly payments.

b)

choose an insurance plan with a high deductible because your monthly payments will be low.

c)

choose to not carry insurance since your money is tight already.

d)

choose an insurance plan with a high deductible because you probably won't use the benefits anyway.

8.

Which person has a greater chance of earning more in his or her lifetime?

a)

Sabrina, works as a cashier at Petco

b)

Donald, works as a high school teacher

c)

Greg, works as a truck driver

d)

Cecilia, works as neurosurgeon

9.

How do you know how much life insurance to purchase?

a)

You should purchase enough coverage to replace your income for your family if you should die.

b)

You should purchase enough coverage to double your income for your family if you should die.

c)

You should not purchase life insurance.

d)

You should purchase $20,000 in life insurance.

10.

Becca is 15 and works at the Dairy Queen. How many hours can she work during the week of April 15th?

a)

18

b)

40

c)

3

d)

10

11.

When you purchase insurance, you are sharing risk. What does that mean?

a)

You're participating in risky behavior with someone else.

b)

A policyholder may not have a loss during the term of their insurance so the premium they pay goes toward covering the losses that others suffer.

c)

The insurance company pays part of the loss and you pay part of the loss.

d)

If the loss is probable, the insurance company will not cover you.

12.

You pay this before the insurance company pays your claim:

a)

deductible

b)

loss

c)

premium

d)

coverage

13.

Joss is hurt while tubing this weekend. He cannot work now, but luckily, Joss has this kind of coverage and will still have money to pay his bills:

a)

life insurance

b)

disability insurance

c)

automobile insurance

d)

renter's insurance

14.

The __________ your education, the ____________ a person's lifetime earning potential.

a)

higher, higher

b)

higher, lower

c)

lower, higher

d)

none of the above

15.

Which of the following would have the least amount of lifetime earning potential?

a)

A high school dropout

b)

An undergraduate college graduate

c)

An associate's graduate

d)

A doctorate graduate