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Relating Income and Careers — Test Answers

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1
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Harry and Helen are married, filing jointly. Their combined taxable income is $65,922. Every week, a total of $187 is withheld from their pay. Based on the table, what can Harry and Helen expect when their taxes are due?

A
Harry and Helen will owe an additional $3,104.
B
Harry and Helen will owe an additional $193.
C
Harry and Helen will receive a refund of $555.
D
Harry and Helen will receive a refund of $724.
3

Two students invest the same amount for college. One uses a tax-advantaged account. Why will that student likely have more money?

A
earnings grow without yearly taxes
B
higher deposits
C
lower tuition
D
reduced investment risk
4

Which are variable expenses? Select two.

A
Food
B
Insurance
C
Rent
D
Entertainment
6

Which rewards are consistent with that of a self-employed entrepreneur?

A
The entrepreneur has control of the development of the company’s culture and core values.
B
The entrepreneur receives paid sick time.
C
The entrepreneur has a guaranteed paycheck each week regardless of the company's success.
D
The entrepreneur has a regular work schedule.
7

A student chooses to attend college rather than work immediately. Why might this decision lead to higher long-term earnings?

A
higher short-term income
B
access to jobs requiring specialized skills
C
reduced costs
D
more free time
8

What best explains how career opportunities are shaped?

A
education only
B
personal choice only
C
economic conditions only
D
education, labor markets, and government programs
9

Patrick has assets that total 9 dollars comma 500 His liabilities total 1 dollars comma 900 Which expression will find Patrick’s net worth?

A
9 dollars comma 500 minus 1 dollars comma 900
B
1 dollars comma 900 plus 9 dollars comma 500
C
1 dollars comma 900 minus 9 dollars comma 500
D
9 dollars comma 500 divided by 1 dollars comma 900
10

Which is a significant financial risk associated with being an entrepreneur?

A
Calculating and paying income taxes
B
Securing income for their business
C
Facing bankruptcy in their business
D
Arranging benefits for themselves
11

What happens if expenses exceed income?

A
Income increases
B
Expenses decrease
C
Savings increase
D
Debt may occur
12

What does earning potential describe?

A
Tax rates
B
Monthly expenses
C
Income over time
D
Current income only
13

Dante listed his assets and liabilities on a personal balance sheet. Dante’s Balance Sheet (August 2013) Assets Liabilities cash $900 credit card $4,000 investments $1,100 student loan $1,000 house $150,000 mortgage $100,000 Car $8,000 car loan $5,000 Total Total Which statement is true about the value of Dante’s assets and liabilities?

A
He has $110,000​​​​​​​ more in liabilities than in assets.
B
He has $50,000 more in assets than in liabilities.
C
He has $50,000​​​​​​​ more in liabilities than in assets.
D
He has $160,000​​​​​​​ more in assets than in liabilities.
14

Which is a monetary benefit of employment?

A
Health insurance
B
Salaries
C
Paid time off
D
Life insurance
15

The original loan amount is called the ______.

A
balance
B
principal
C
interest
D
payment
17

A student receives a $⁢4,000 grant and a $⁢4,000 loan. How do these differ?

A
grant requires interest
B
both must be repaid
C
loan is free money
D
loan increases debt, grant reduces cost
20

Why do college graduates often earn more over time?

A
They have access to higher-paying careers
B
They avoid expenses
C
They work fewer hours
D
They receive free housing

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