When shopping for a savings account you should look for one that offers
annual fees.
loyal customer fees.
simple interest.
compounding interest.
Question 6 (Multiple Choice Worth 4 points)
A certificate of deposit is best for
money you want to put aside for a few months or years.
money you may need at a moment’s notice.
retirement investing.
storing mortgage payments.
Question 7 (Multiple Choice Worth 4 points)
Who would pay the least as a portion of income under a progressive tax?
doctor earning $110,000 per year
manager earning $45,000 per year
athlete earning $2.5 million per year
dishwasher earning $18,000 per year
Question 8 (Multiple Choice Worth 4 points)
Some people would prefer a single income tax rate because it
is easier to calculate.
would increase the government’s revenue.
means everyone would pay the same income percentage in taxes.
would reduce the percent of income poorer families pay in income taxes.
Question 9 (Multiple Choice Worth 4 points)
Imagine you live in a society with proportional taxation. Your friend makes half of your salary and pays 10% in income taxes. Which rate most likely would be your income tax rate?
2%
10%
20%
30%
Question 10 (Multiple Choice Worth 4 points)
You earn $30,000 per year and paid 20% in taxes this year. The government decreased the tax rate to 10% for next year. Which will be your net income?
$3,000
$7,000
$27,000
$30,000
Question 11 (Multiple Choice Worth 4 points)
You earn $50,000 per year and paid 10% in taxes this year. The government increased the tax rate to 20% for next year. Which amount will you pay in taxes?
$1,000
$2,000
$5,000
$10,000
Question 12 (Multiple Choice Worth 4 points)
Who would pay the most as a portion of income under a regressive tax?
factory owner earning $90,000 per year
grill master earning $10,000 per year
economist earning $60,000 per year
artist earning $20,000 per year
Question 13 (Multiple Choice Worth 4 points)
Your friend’s job pays $10 per hour and he works 40 hours per week. His tax rate is 20%. Assuming he works 50 weeks of the year his yearly net income is
$4,000
$16,000
$20,000
$40,000
Question 14 (Multiple Choice Worth 4 points)
Economists recommend spending somewhere between ________of your income on housing.
50% and 70%
10% and 50%
25% and 35%
75% and 90%
Question 15 (Multiple Choice Worth 4 points)
Buying things with credit means you
are financially irresponsible.
never truly own the item.
pay less for the item overall.
pay more for the item overall.
Question 16 (Multiple Choice Worth 4 points)
The first step in creating a budget is determining your
expenses.
credit debt.
income.
tax bracket.
Question 17 (Multiple Choice Worth 4 points)
Your expenses exceed your income. You should cut back your
fixed costs.
variable costs.
opportunity costs.
budget.
Question 18 (Multiple Choice Worth 4 points)
Utility refers to a person's derived _____________ from consuming a good.
scarcity.
usefulness.
satisfaction.
opportunity cost.
Question 19 (Multiple Choice Worth 4 points)
Even with an unlimited supply of your favorite snack, eventually you will stop eating because of
diminishing utility.
opportunity cost.
trade-offs.
scarcity.
Question 20 (Multiple Choice Worth 4 points)
Your grandmother is nearing retirement. She currently has 90% of her savings in stocks and 10% in mutual funds. What would you recommend to her?
Nothing; the money is allocated just right.
Liquidate all assets and keep the cash at home.
Shift highly aggressive investments into more conservative investments such as government bonds and a savings account.
Move money from mutual funds into stocks.
annual fees.
loyal customer fees.
simple interest.
compounding interest.
Question 6 (Multiple Choice Worth 4 points)
A certificate of deposit is best for
money you want to put aside for a few months or years.
money you may need at a moment’s notice.
retirement investing.
storing mortgage payments.
Question 7 (Multiple Choice Worth 4 points)
Who would pay the least as a portion of income under a progressive tax?
doctor earning $110,000 per year
manager earning $45,000 per year
athlete earning $2.5 million per year
dishwasher earning $18,000 per year
Question 8 (Multiple Choice Worth 4 points)
Some people would prefer a single income tax rate because it
is easier to calculate.
would increase the government’s revenue.
means everyone would pay the same income percentage in taxes.
would reduce the percent of income poorer families pay in income taxes.
Question 9 (Multiple Choice Worth 4 points)
Imagine you live in a society with proportional taxation. Your friend makes half of your salary and pays 10% in income taxes. Which rate most likely would be your income tax rate?
2%
10%
20%
30%
Question 10 (Multiple Choice Worth 4 points)
You earn $30,000 per year and paid 20% in taxes this year. The government decreased the tax rate to 10% for next year. Which will be your net income?
$3,000
$7,000
$27,000
$30,000
Question 11 (Multiple Choice Worth 4 points)
You earn $50,000 per year and paid 10% in taxes this year. The government increased the tax rate to 20% for next year. Which amount will you pay in taxes?
$1,000
$2,000
$5,000
$10,000
Question 12 (Multiple Choice Worth 4 points)
Who would pay the most as a portion of income under a regressive tax?
factory owner earning $90,000 per year
grill master earning $10,000 per year
economist earning $60,000 per year
artist earning $20,000 per year
Question 13 (Multiple Choice Worth 4 points)
Your friend’s job pays $10 per hour and he works 40 hours per week. His tax rate is 20%. Assuming he works 50 weeks of the year his yearly net income is
$4,000
$16,000
$20,000
$40,000
Question 14 (Multiple Choice Worth 4 points)
Economists recommend spending somewhere between ________of your income on housing.
50% and 70%
10% and 50%
25% and 35%
75% and 90%
Question 15 (Multiple Choice Worth 4 points)
Buying things with credit means you
are financially irresponsible.
never truly own the item.
pay less for the item overall.
pay more for the item overall.
Question 16 (Multiple Choice Worth 4 points)
The first step in creating a budget is determining your
expenses.
credit debt.
income.
tax bracket.
Question 17 (Multiple Choice Worth 4 points)
Your expenses exceed your income. You should cut back your
fixed costs.
variable costs.
opportunity costs.
budget.
Question 18 (Multiple Choice Worth 4 points)
Utility refers to a person's derived _____________ from consuming a good.
scarcity.
usefulness.
satisfaction.
opportunity cost.
Question 19 (Multiple Choice Worth 4 points)
Even with an unlimited supply of your favorite snack, eventually you will stop eating because of
diminishing utility.
opportunity cost.
trade-offs.
scarcity.
Question 20 (Multiple Choice Worth 4 points)
Your grandmother is nearing retirement. She currently has 90% of her savings in stocks and 10% in mutual funds. What would you recommend to her?
Nothing; the money is allocated just right.
Liquidate all assets and keep the cash at home.
Shift highly aggressive investments into more conservative investments such as government bonds and a savings account.
Move money from mutual funds into stocks.