WorksheetsGCM EPF HN Unit 5-8: Vocab Review
Total questions: 80
Worksheet time: 40mins
Name
Class
Date
1.
What term describes the money remaining from an employee's paycheck after all deductions have been taken out?
a)
Gross income
b)
Net pay
c)
Base salary
d)
Commission
2.
Which of the following is NOT typically considered a source of income?
a)
Wages from employment
b)
Credit card debt
c)
Investment dividends
d)
Rental property income
3.
What document determines the amount of federal income tax withheld from your paycheck?
a)
W-2 form
b)
1099 form
c)
W-4 form
d)
I-9 form
4.
Which type of education typically results in the highest lifetime earnings potential?
a)
High school diploma
b)
Associate's degree
c)
Technical certification
d)
Graduate degree
5.
What is the term for additional compensation beyond base salary that employers offer?
a)
Benefits
b)
Allowances
c)
Incentives
d)
Bonuses
6.
Which of these is considered a mandatory payroll deduction?
a)
Health insurance premiums
b)
401(k) contributions
c)
Social Security tax
d)
Charitable donations
7.
What term describes payment based on a percentage of sales made?
a)
Bonus
b)
Commission
c)
Salary
d)
Wage
8.
Which employee benefit is required by federal law for most employers to provide?
a)
Health insurance
b)
Paid vacation
c)
Workers' compensation
d)
Retirement plans
9.
What factor most significantly impacts lifetime earning potential?
a)
Geographic location
b)
Education level
c)
Starting salary
d)
Company size
10.
Which income source is typically considered passive income?
a)
Overtime pay
b)
Hourly wages
c)
Investment returns
d)
Commission sales
11.
What is the purpose of claiming allowances on a W-4 form?
a)
To increase your base salary
b)
To adjust tax withholding
c)
To enroll in benefits
d)
To request overtime
12.
Which type of skill development typically leads to higher earnings?
a)
General skills
b)
Specialized technical skills
c)
Basic computer skills
d)
Entry-level skills
13.
What term describes regular compensation paid on an annual basis?
a)
Commission
b)
Wages
c)
Salary
d)
Tips
14.
Which benefit is considered a tax-advantaged retirement saving option?
a)
Health insurance
b)
Life insurance
c)
401(k) plan
d)
Paid time off
15.
What type of income is typically reported on a 1099 form?
a)
Regular wages
b)
Independent contractor earnings
c)
Unemployment benefits
d)
Social Security benefits
16.
Which deduction is voluntary and can be adjusted by the employee?
a)
Medicare tax
b)
Social Security tax
c)
Federal income tax
d)
401(k) contributions
17.
What term describes additional pay for working beyond standard hours?
a)
Holiday pay
b)
Overtime pay
c)
Base pay
d)
Shift differential
18.
Which career path typically requires ongoing professional development?
a)
Entry-level retail
b)
Food service
c)
Professional services
d)
Manual labor
19.
What is the term for non-monetary compensation provided by employers?
a)
Fringe benefits
b)
Base salary
c)
Commission
d)
Overtime pay
20.
Which factor is most important when calculating net pay?
a)
Job title
b)
Years of experience
c)
Gross income
d)
Company size
21.
What is scarcity in economic terms?
a)
Having unlimited resources to meet unlimited wants
b)
The basic economic problem of having unlimited wants but limited resources
c)
When resources are abundant and readily available
d)
A situation where supply exceeds demand
22.
What is an opportunity cost?
a)
The monetary cost of a purchase
b)
The total cost of production
c)
The next best alternative given up when making a choice
d)
The cost of labor in production
23.
What is consumer sovereignty?
a)
The government's control over consumer choices
b)
Businesses dictating what consumers should buy
c)
Consumer ability to control market prices
d)
Consumer influence over what goods and services are produced
24.
Which term describes a person who takes risks to organize resources and start a business?
a)
Manager
b)
Entrepreneur
c)
Employee
d)
Stockholder
25.
What is elasticity of demand?
a)
The physical flexibility of a product
b)
The responsiveness of quantity demanded to a change in price
c)
The total demand for a product
d)
The speed at which products sell
26.
What is a price ceiling?
a)
The highest price allowed by law for a good or service
b)
The natural maximum price in a market
c)
The price where supply equals demand
d)
The price that maximizes profit
27.
What is human capital?
a)
Money invested in machinery
b)
Physical assets owned by a company
c)
Knowledge, skills, and experience that make a worker productive
d)
The number of workers in a company
28.
What best describes market equilibrium?
a)
When government controls prices
b)
When supply equals demand
c)
When prices are at their highest
d)
When consumers stop buying
29.
What is net pay?
a)
The total amount earned before deductions
b)
The amount remaining after all deductions
c)
The base salary without overtime
d)
The bonus payment received
30.
What are employee incentives?
a)
Punishments for poor performance
b)
Required work hours
c)
Rewards or benefits that motivate better performance
d)
Basic salary requirements
31.
What is consumer sovereignty?
a)
Government control of markets
b)
Producer control of markets
c)
Consumer control over what is produced through their purchasing decisions
d)
Bank control over consumer spending
32.
What is supply and demand?
a)
Government regulation of prices
b)
The relationship between available goods and consumer desire
c)
The total amount of goods produced
d)
The total amount of goods consumed
33.
What is a price floor?
a)
The lowest legal price for a good or service
b)
The natural minimum price in a market
c)
The average price of goods
d)
The starting price of new products
34.
What best describes trade-offs?
a)
Exchanging goods between countries
b)
Giving up one thing to get another
c)
Selling products at a loss
d)
Buying products in bulk
35.
What are employee benefits?
a)
Only monetary compensation
b)
Additional forms of compensation beyond wages
c)
Performance bonuses only
d)
Overtime pay only
36.
What affects the market value of labor?
a)
Only years of experience
b)
Only educational level
c)
Multiple factors including skills, education, and market demand
d)
Only job title
37.
What is production cost?
a)
Only the cost of materials
b)
Only the cost of labor
c)
The total expense of creating goods or services
d)
Only the cost of marketing
38.
How do incentives influence economic behavior?
a)
They have no effect on decisions
b)
They only affect businesses
c)
They motivate specific actions and choices
d)
They only work in government settings
39.
What is market demand?
a)
What producers want to sell
b)
What consumers are willing and able to buy
c)
Government purchasing requirements
d)
International trade volumes
40.
What determines equilibrium price?
a)
Government regulation only
b)
Producer decisions only
c)
Consumer preferences only
d)
The interaction of supply and demand
41.
What is the primary function of money in an economic system?
a)
To serve as a medium of exchange, store of value, and unit of account
b)
To create wealth for financial institutions
c)
To generate interest payments
d)
To facilitate international trade only
42.
Which type of financial market primarily deals with short-term debt instruments?
a)
Capital market
b)
Money market
c)
Forex market
d)
Derivatives market
43.
What is the main purpose of the Federal Reserve System?
a)
To collect taxes for the government
b)
To serve as the central bank and regulate monetary policy
c)
To provide loans to small businesses
d)
To manage the stock market
44.
How does fiscal policy differ from monetary policy?
a)
Fiscal policy involves government spending and taxation
b)
Fiscal policy only affects interest rates
c)
Fiscal policy is controlled by the Federal Reserve
d)
Fiscal policy only impacts international trade
45.
What is the Laffer Curve used to illustrate?
a)
Stock market trends
b)
Interest rate fluctuations
c)
Relationship between tax rates and government revenue
d)
Federal Reserve decisions
46.
What constitutes the national debt?
a)
Annual government spending
b)
Total amount the government owes to creditors
c)
Current year's budget deficit
d)
Federal Reserve assets
47.
Which best describes compound interest?
a)
Interest earned only on the principal amount
b)
Interest earned on both principal and accumulated interest
c)
A fixed interest rate that never changes
d)
Interest paid monthly to the account holder
48.
What distinguishes a commercial bank from a credit union?
a)
Credit unions are for-profit institutions
b)
Commercial banks are member-owned cooperatives
c)
Credit unions are member-owned, not-for-profit organizations
d)
Commercial banks only serve businesses
49.
What is electronic funds transfer (EFT)?
a)
Writing paper checks
b)
Using cash at ATMs only
c)
Digital movement of money between accounts
d)
Converting currency manually
50.
What is bank reconciliation?
a)
Opening a new account
b)
Comparing bank statement with personal records
c)
Depositing checks
d)
Withdrawing money
51.
What is the FDIC's primary function?
a)
Setting interest rates
b)
Insuring bank deposits
c)
Printing money
d)
Managing the stock market
52.
What characterizes a balanced budget?
a)
Government spending exceeds revenue
b)
Revenue equals expenditures
c)
Revenue exceeds spending
d)
No debt is allowed
53.
How do financial institutions affect personal financial planning?
a)
They provide investment and savings options
b)
They only offer checking accounts
c)
They determine tax rates
d)
They set government policy
54.
What is a budget deficit?
a)
When tax revenues exceed spending
b)
When spending exceeds tax revenues
c)
When the budget is balanced
d)
When there is no national debt
55.
What role do financial markets serve?
a)
They only handle government bonds
b)
They connect borrowers with lenders
c)
They exclusively manage foreign currency
d)
They print money
56.
What is simple interest?
a)
Interest calculated on principal and accumulated interest
b)
Interest calculated only on the principal amount
c)
Interest that varies monthly
d)
Interest paid to the government
57.
Which is a source of government revenue?
a)
Federal Reserve profits
b)
Bank deposits
c)
Income taxes
d)
Corporate dividends
58.
What is online banking's primary advantage?
a)
Higher interest rates
b)
24/7 account access
c)
Free checks
d)
Personal interaction
59.
How does the Federal Reserve influence the economy?
a)
By directly setting stock prices
b)
By controlling the money supply and interest rates
c)
By collecting taxes
d)
By managing individual bank accounts
60.
What is the key difference between checking and savings accounts?
a)
Only checking accounts are insured
b)
Only savings accounts earn interest
c)
Checking accounts offer unlimited transactions
d)
Savings accounts require no minimum balance
61.
What is the economic concept that describes the situation where resources are limited but wants are unlimited?
a)
Trade-off
b)
Scarcity
c)
Opportunity cost
d)
Marginal benefit
62.
When a company decides to specialize in producing what they can make most efficiently compared to others, this is known as:
a)
Comparative advantage
b)
Opportunity cost
c)
Trade-off
d)
Marginal cost
63.
The additional cost of producing one more unit of a good or service is called:
a)
Fixed cost
b)
Variable cost
c)
Marginal cost
d)
Total cost
64.
What term describes the additional benefit gained from consuming one more unit of a good or service?
a)
Total utility
b)
Comparative advantage
c)
Consumer surplus
d)
Marginal benefit
65.
The practice of making purchases to display wealth or social status is known as:
a)
Market equilibrium
b)
Conspicuous consumption
c)
Consumer behavior
d)
Rational choice
66.
Which economic concept refers to something that motivates or encourages certain behaviors or actions?
a)
Incentive
b)
Trade-off
c)
Opportunity cost
d)
Productivity
67.
What term describes the unplanned results that occur as a consequence of an economic decision?
a)
Market forces
b)
Supply and demand
c)
Unintended consequences
d)
Economic impact
68.
The measure of output per unit of input is known as:
a)
Efficiency
b)
Productivity
c)
Competition
d)
Innovation
69.
What is the term for a legally binding agreement between two or more parties?
a)
Negotiation
b)
Contract
c)
Transaction
d)
Agreement
70.
The process of evaluating different options before making a purchase is called:
a)
Consumer vigilance
b)
Comparison shopping
c)
Market research
d)
Price analysis
71.
What term describes how changes in price affect consumers' purchasing decisions?
a)
Consumer demand
b)
Market equilibrium
c)
Price elasticity
d)
Supply response
72.
The practice of protecting personal information from unauthorized access is known as:
a)
Consumer protection
b)
Identity security
c)
Data privacy
d)
Information safeguarding
73.
When businesses compete with each other, what typically happens to prices?
a)
Prices remain stable
b)
Prices increase
c)
Prices decrease
d)
Prices become unpredictable
74.
What is the term for the systematic organization of financial documents and records?
a)
Data management
b)
Filing system
c)
Record keeping
d)
Financial tracking
75.
The use of messages to influence consumer behavior is called:
a)
Public relations
b)
Marketing
c)
Communication
d)
Advertising
76.
What describes the relationship between quantity available and quantity desired in a market?
a)
Market equilibrium
b)
Price ceiling
c)
Supply and demand
d)
Consumer preference
77.
The basic rights that protect consumers in the marketplace are known as:
a)
Legal protections
b)
Market regulations
c)
Consumer rights
d)
Trading rules
78.
When making economic decisions, what must be given up in exchange for something else is called:
a)
Opportunity cost
b)
Trade-off
c)
Scarcity
d)
Economic choice
79.
The overall improvement in living conditions due to increased productivity is called:
a)
Economic growth
b)
Standard of living
c)
Market efficiency
d)
Consumer welfare
80.
Digital tools used to track spending and manage finances are referred to as:
a)
Spreadsheets
b)
Financial applications
c)
Budget trackers
d)
Money managers
100 %
