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Income Earning - TEST

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Human Capital includes which of the following:

a)

The knowledge that people possess

b)

The skills that people possess

c)

The talent that people possess

d)

All of these answers are correct

2.

On average, which of the following people is likely to earn the largest income?

a)

A person who earns a Master's degree

b)

A person who earns a Bachelor's degree

c)

A person who graduates high school

d)

A person with a GED

3.

People invest in human capital by:

a)

going to school.

b)

pursuing additional training.

c)

developing skills.

d)

All of these answers are correct.

4.

Which of the following is true of productivity :

a)

Productivity is measured as a ratio of output per worker per unit of time.

b)

More productive workers tend to earn higher incomes.

c)

An increase in human capital can increase productivity.

d)

All of these answers are correct.

5.

The F.I.C.A. tax is used to fund:

a)

highways, national parks and national defense

b)

state highways, state parks, state troopers, and public education

c)

Social Security and Medicare

d)

street lights, fire and police protection

6.

Gross pay is

a)

the amount earned over a lifetime.

b)

the amount earned before deductions or taxes are taken out.

c)

the amount received after deductions or taxes are taken out.

d)

computed by multiplying the number of hours by the hourly rate of pay, then subtracting federal and state income taxes.

7.

A W-4 Form is:

a)

used by employers to determine the amount of income tax to withhold from employees' earnings.

b)

the form taxpayers must fill out if they paid more income tax than necessary and want a refund.

c)

is a form employers must provide to employees shortly after year-end to report annual income and withholding for the employee's tax return.

d)

a printed statement of the amount that an employee is paid.

8.

Wages are

a)

found by multiplying an hourly pay rate by the numbers of hours worked.

b)

a payment people receive for providing natural resources in the market.

c)

an annual amount paid monthly or bi-monthly for a specified number of hours worked.

d)

government fees on business and individual income, activities, products or property.

9.

Who pays FICA taxes?

a)

Employees pay the FICA tax.

b)

Employees and Employers pay the FICA tax.

c)

The government pays the FICA tax on behalf of workers.

d)

All of these answers are correct.

10.

Overtime wage is

a)

based on a rate per unit

b)

based on working time in a week beyond the standard 40-hour work week

c)

the lowest hourly wage employers can pay

d)

payment for work

11.

Salary is

a)

Income paid as a percentage of sales made by a salesperson

b)

Money paid for service beyond what is required

c)

A fixed payment for work

d)

Payment for work calculated by the hour, day, or piecework

12.

All of the following are examples of payroll deductions except,

a)

State taxes

b)

Federal income taxes

c)

Self-employment income

d)

FICA

13.

All are employee benefits, except

a)

Paid vacation and holiday time

b)

Medicare

c)

Life and health insurance

d)

Retirement savings plan

14.

Helen grosses $32,000 a year. What are her gross weekly wages?

a)

$1,333.33

b)

$615.38

c)

$2,560.00

d)

$2,666.67

15.

A car salesman earns 8.6% on the sale of a car priced at $24, 990. What is his take home pay that day?

a)

$21,491.40

b)

$2,905.81

c)

$2,149.14

d)

$214,914.00