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Economics Unit 4 Test Review

Total questions: 40

Worksheet time: 40mins

Name
Class
Date
1.

14. Julia earns $40,000 per year. This is an example of:

a)

Wages

b)

Assets

c)

Commission

d)

Salary

2.

The W-4 form lets...

a)

the government know how much you paid in taxes last year

b)

your employer know how much to withhold from your paycheck

c)

the 3 major credit bureaus know how many dependents you have

d)

you know how much you paid in taxes last year

3.

Which of the following is FALSE about the W-2 form?

a)

The W-2 is sent out in April of every year

b)

It lets you know how much you earned last year

c)

It lets you know how much was withheld from your paychecks

d)

You get 1 W-2 form each year, from each employer

4.
Which statement best describes the relationship between a person's educational level and that person's potential earning power?
a)
Education has no effect on a person's potential earning power.
b)
A person with a professional degree is likely to earn at least four times as much per year as a person who did not complete high school.
c)
Attaining a higher educational level affects the earning potential only for people over 40 years old.
d)
Attaining a higher education level decreases potential earning power.
5.
With-holdings from paychecks that go to provide income support for people who are unemployed, disabled, or over age 65
a)
401k
b)
Social Security
c)
Medicare
d)
Medicaid
6.
What form is used by your employer to allow them to withhold taxes from your paycheck?
a)
I-9
b)
W-2
c)
W-4
d)
1040EZ
7.
 Which of the following should you  consider when making a choice about a university or college to attend?
a)
Location of College
b)
Average debt of a student
c)
Cost of attending that college
d)
All of the above
8.

This is a percentage of earnings that is taken out of ones paycheck.

a)

Liberty Tax

b)

Security Tax

c)

Income Tax

d)

Sales Tax

9.
Which type of tax do you pay on your home or land?
a)
Location Tax
b)
Land Tax
c)
Property Tax
d)
House Tax
10.

What is the definition of "rate of return"?

a)

expected financial profit from starting a savings account

b)

expected return from saving money

c)

expected gain from starting a new business venture

d)

expected return from making an investment

11.

Which of the following is NOT an example of a non-income factor that can help a person decide which occupation to pursue?

a)

career prospects

b)

benefits

c)

wage per hour

d)

traveling distance

12.

The labor market is also known as the ______ market

a)

job

b)

financial

c)

stock

d)

employment

13.

An employee who is more _____________ will have a better reputation, and therefore will also have a better opportunity to earn more money through more hours and promotions.

a)

productive

b)

experienced

c)

professional

d)

prosperous

14.

A registered nurse can earn an average salary of $90,000 in Hawaii and $57,000 in Kansas. This is relative to the location and ______ __ ________.

a)

cost of location

b)

cost of living

c)

rate of return

d)

rate of living

15.

Benefit vs cost is also referred to as what?

a)

positive vs negative

b)

pros vs cons

c)

good vs bad

d)

profit vs non-profit

16.

Who will send you your W-2 form every year by January 31st once you enter the workforce?

a)

you will be be sent a W-2 form

b)

the government

c)

the IRS

d)

your employer

17.

What is the name of the tax that is paid to a governing body for the sales of certain goods and services?

a)

sales tax

b)

income tax

c)

property tax

d)

payroll tax

18.

Your ___ ________ is the rate you pay on your highest dollar of taxable income.

a)

tax rate

b)

tax bracket

c)

sales tax

d)

tax percent

19.

Which of the following would NOT be included in utilities?

a)

water

b)

electric

c)

gas

d)

groceries

20.

What bureau under the Federal Trade Commission (FTC) protects American consumers from fraud?

a)

Bureau of Fraud Protection

b)

Bureau of Consumer Protection

c)

Better Business Bureau

d)

Bureau of Consumer Purchases

21.

What is the most common method for researching goods and services before purchase?

a)

consumer reviews

b)

calling businesses

c)

the internet

d)

google

22.

Forming the habit early of carefully considering each purchase is a good habit to start now because it can prevent you from which of the following things?

a)

creating a lower cost of living

b)

creating a succesful business

c)

creating a high credit score

d)

creating unnecessary debt

23.

__________ serve as a common language within the free market system.

a)

Prices

b)

Incentives

c)

Resources

d)

Influences

24.

Prices set a ___________ ____________ of value for products

a)

green light

b)

standard measure

c)

common language

d)

incentive barrier

25.

What determines how much we can afford to pay for an item?

a)

our budgeting method

b)

our income

c)

our preferences

d)

our age

26.

Which of the following is a large-scale positive effect of consumer decisions?

a)

improve economic growth

b)

increase unemployment rates

c)

improve individuals credit scores

d)

create debt

27.

Which of the following is a large-scale negative effect of consumer decisions?

a)

create debt for individuals

b)

more industrial production

c)

deplete natural resources

d)

improve standard of living

28.

Which of the following is NOT one of the 4 main product features?

a)

durability

b)

maintenance cost

c)

life of the product

d)

quantity

29.

Which of the following is NOT one of the top 5 reasons why people donate to charity?

a)

egoism

b)

taxes

c)

honesty

d)

altruism

30.

What benefit do non-profit companies receive?

a)

tax exemption

b)

tax bracketing

c)

less expenses

d)

more profit

31.

What does the labor market determine for workers?

a)

unemployment

b)

wages and salaries

c)

government legislation

d)

experience level needed

32.

What is Florida's rank for cost of living?

a)

25

b)

30

c)

48

d)

7

33.

Which of the following is NOT one of the qualities or skills that contribute to being a more productive worker?

a)

time management

b)

ability to prioritize and minimize distractions

c)

organizational skills

d)

maximizing home life issues/stress

34.

Which form tells you your wages, tips and taxes taken out from the previous year of work?

a)

W-2

b)

W-4

c)

1098

d)

1040-EZ

35.

Which of the following is NOT one of the 4 other recommended sources of income?

a)

rental income

b)

investments

c)

snowball debt

d)

interest income

36.
A tool that provides information about you to a potential employer.
a)
Career Portfolio
b)
Resume
c)
References
d)
Cover Letter
37.

What are capital gains?

a)

money you earn when you sell an investment

b)

land, real estate, stocks, bonds and/or mutual funds

c)

extra money that you make when you loan money to someone with interest

d)

if you own something and rent it out to other people

38.

What is the FIRST thing someone should consider when creating their budget?

a)

the total sum of monthly expenses

b)

how much will be spent on rent and utilities

c)

how much will be spent on rent

d)

how much taxes will be taken out

39.

What is the definition of fraud?

a)

removing financial resources from someone without their permission

b)

scamming someone

c)

wrongful or criminal deception intended to result in financial or personal gain.

d)

lying to someone for financial or personal gain

40.

Which of the following is a common type of scam that has increased due to increasing use and availability of technology?

a)

robocalls

b)

IRS calls

c)

scam baiting

d)

insurance fraud