Sources of Income

Question 1

Byron’s income last year was $61,700. He made $48,000 at his plumbing job and had income from an apartment that he rented out. If Byron earned the same amount of rent each month for the entire year, approximately how much per month did he collect?a.$940b.$1,140c.$4,000d.$5,140

Revolt · Accepted Answer

B

Question 2

Zoe is a chemistry teacher earning a salary of $38,000 per year. She also tutors part-time, charging $20 per session. Which of the following types of income does Zoe have? I earned income II passive income III capital gains income a. I b. II c. I and II d. I and III Please select the best answer from the choices provided

Revolt · Accepted Answer

A

Question 3

Which of the following is an example of earning income from capital gains? a. hourly employee earning $17 per hour b. salaried employee earning $56,000 per year c. selling stocks and making a profit of $3,000 d. buying a car for a total of $5,000 Please select the best answer from the choices provided

Revolt · Accepted Answer

C

Question 4

Trevor restores antique cars and sells them for profit. This is an example of _____ income.a.capital gainsb.earnedc.hourlyd.passive

Revolt · Accepted Answer

A

Question 5

Jennifer earns $17.35 per hour at her job. She works 6 hours per day, 5 days per week. What is Jennifer’s gross income for a 2 week pay period?a.$520.50b.$694.00c.$867.50d.$1,041.00

Revolt · Accepted Answer

D

Question 6

Allen bought 1,350 shares of stock for $12 per share. If he sold all his shares for $27,000, how much profit on each share did he make?a.$6b.$8c.$10d.$12

Revolt · Accepted Answer

B

Question 7

Tyra makes $21.40 per hour at her job for the first 40 hours and $32.10 for anything over 40 hours. If Tyra typically works 45 hours per week, how much does she earn?a.$856.00b.$963.00c.$1,016.50d.$1,444.50

Revolt · Accepted Answer

C

Question 8

Desiree works 28 hours per week. She has a monthly income of $120 from investments. Desiree also plays in a band one night a week making $200. She has a total annual income of $49,696. Desiree wants to ask her boss for a raise so that next year she can have a total income of $51,880. Assuming the other incomes remain the same, how much of an hourly raise will Desiree need?a.$1.25b.$1.50c.$1.75d.$2.00

Revolt · Accepted Answer

B

Question 9

The table below shows the typical hours worked by employees at a company. A new employee is offered an annual salary of $37,000. Hourly employees get paid $14 per hour, but get $21 per hour for each hour over 40 hours. Should the new employee choose the salaried or hourly pay? Explain your reasoning.Sun.Mon.Tues.Wed.Thurs.Fri.Sat.08.59.57.588.54

Revolt · Accepted Answer

The new employee should choose the salaried pay. The hourly job would pay about $36,218 per year based on the hours shown, while the salary pays $37,000 per year. The salary is also more predictable.

Question 10

Explain why you might not want to have passive income as your only source of income.

Revolt · Accepted Answer

Passive income can be unpredictable and may not be enough to cover regular expenses. Investments can lose value, rental properties can have vacancies or repair costs, and other passive-income sources may decrease. Having another source of income provides greater financial stability.

Sources of Income Answers

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