Economics Fall Semester Review

How much you're being paid is the only thing you need to consider when considering a job offer. True or False

False

There is no relationship between the level of education received and lifetime earnings. True or False

False

When considering a job offer, you should only consider how much you're being paid before you accept the offer. True or False

False

Generally, the more education you receive, the higher your lifetime earnings will be. True or False

True

When considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer. True or False

True

Which of the following is NOT considered part of your benefits package available from your employer? a. Free technology equipment b. Disability Insurance c. Paid time off d. Healthcare insurance

a. Free technology equipment

What does the W-2 form tell you? a. How much you've earned and how much taxes you've paid in the last year. b. When to file your tax return. c. How much federal income tax your employer will withhold from your paycheck d. How often your employer will be paying you.

a. How much you've earned and how much taxes you've paid in the last year.

What do taxes pay for? a. Schools, government departments, roads, and emergency services b. Privately-owned businesses c. Operation of financial institutions d. None of the above

a. Schools, government departments, roads, and emergency services

The gig economy offers ________. a. the total availability of employment and labor in the economy b. Flexible, short-term, and independent jobs. c. An economic system in which assets or services are shared between individuals. d. The migration of workers to high-tech jobs.

b. Flexible, short-term, and independent jobs.

How does the government pay for roads, schools, and emergency services? a. They are funded through non-profits. b. They are funded through taxes. c. They are funded through charitable donations d. None of the above

b. They are funded through taxes.

Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year. a. 1040 b. W-2 c. W-4 d. W-9

b. W-2

All of the following may be a part of your benefits package available from your employer, except: a. disability insurance b. matching contributions to a retirement account c. FICA d. healthcare insurance

c. FICA

What is the purpose of the W-4 form? a. To file your tax return. b. To determine how much your gross pay should be. c. To inform your employer of how much federal income tax to withhold from your paychecks. d. To avoid paying income taxes on your paychecks.

c. To inform your employer of how much federal income tax to withhold from your paychecks.

What is the gig economy? a. The number of people in the economy who have full-time employment jobs. b. The total availability of employment and labor in the economy. c. An economic system in which assets or services are shared between individuals. d. A flexible market that allows you to work short-term, independent jobs.

d. A flexible market that allows you to work short-term, independent jobs.

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________. a. Gross Pay b. Net Pay c. Total Pay d. Year-to-date Pay

b. Net Pay

What do you need in order to fill out your 1040? a. Your W-2 b. Your routing and bank account number c. A record of any other supplemental income d. All of the above

d. All of the above

Which of the following is a possible tax or deduction that they may show up on your paycheck? a. Federal income tax b. Contributions to retirement savings c. FICA d. All of the above

d. All of the above

Which of the following statements is true about taxes? a. Taxes pay for schools and government departments b. Taxes pay for roads and emergency services. c. Taxes are often used at the federal, state, and local levels. d. All of the above

d. All of the above

What do you need in order to fill out your 1040? a. Your W-2 b. Your employer benefits documentation c. Your credit card statement d. Your job offer

a. Your W-2

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer. a. benefits b. pensions c. deductions d. allowances

a. benefits

The ___________ is a flexible market that allows you to work short-term, independent jobs. a. gig economy b. labor market c. employee workforce d. sharing economy

a. gig economy

The W-4 tax form is used to ___________. a. tell your employer how much federal income tax to withhold from your paychecks to send to the IRS. b. determine how much your gross pay should be. c. file your tax return d. avoid paying income taxes on your paychecks.

a. tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.

Which of the following is NOT a possible tax or deduction that could come out of your paycheck? a. FICA b. Overtime pay c. Federal income tax d. Contributions to retirement savings

b. Overtime pay

What is net pay? a. The amount of pay earned for the total number of hours worked. b. The amount of money you're paid after all taxes and deductions are taken out of your paycheck. c. The amount of money you're paid before all taxes and deductions are taken out of your paycheck. d. Your gross pay plus any bonuses.

b. The amount of money you're paid after all taxes and deductions are taken out of your paycheck.

Net pay is NOT ________. a. The money that you take home on your paycheck. b. Your gross pay plus any bonuses. c. less than gross pay. d. The amount of money you're paid after all taxes and deductions are taken out of your paycheck

b. Your gross pay plus any bonuses.

For most careers, which degree will most likely result in the highest lifetime earnings? a. High School Degree b. Associate's Degree c. Licensure or certification d. Bachelor's Degree

d. Bachelor's Degree

Which of the following is NOT a possible tax or deduction that could show up on your paycheck? a. State income tax b. Contributions to retirement savings c. FICA d. Sales tax

d. Sales tax

What do you NOT need in order to fill out your 1040? a. Your W-2 b. Your routing and bank account number c. A record of any other supplemental income d. Your employer benefits documentation

d. Your employer benefits documentation

The W-2 form is a form that tells you _______. a. how often you will be paid. b. how much taxes you owe to the federal government. c. how much taxes to withhold from your paycheck d. how much taxes you've paid in the last year based on how much you've earned

d. how much taxes you've paid in the last year based on how much you've earned

When you start a new job, you fill out a W-4 form to _________. a. determine how much your gross pay should be. b. file your tax return. c. avoid paying income taxes on your paychecks d. to determine how much federal income tax your employer should withhold from your paychecks

d. to determine how much federal income tax your employer should withhold from your paychecks