FINANCIAL LITERACY EXAM AND
ANSWERS.
The next best choice you could have made, but did not make. - Answers-Opportunity
Cost
Some opportunity costs for the Robinsons. - Answers-Having less time to relax, less
time to go out to dinner, and less money to spend.
Physical, intellectual, and creative talents of people. - Answers-Human resources
Gifts of nature. Includes, water, forests, natural gas, oil, and climate. - Answers-Natural
resources
Goods that are used to produce other goods and services. Includes, tools, factories,
equipment, and office buildings. - Answers-Capital resources
Is not referred as money, but is referred as items producing something else. - Answers-
Capital
A medium exchange which allows you to get goods and services - Answers-Money
Why should you stay in school and earn your high school diploma instead of dropping
out? - Answers-Higher income, job opportunities, getting a degree, and making family
proud.
What is cost of dropping out of school? - Answers-Not getting an education, lower
income, less job opportunities, inability to attend college.
Why should you save money? - Answers-You won't be in debt.
Is important b/c the grids gives a step-by-step process in what you like. Also a clearer
view in what you think you like and what you don't like. - Answers-Decision-making
Job Application Process - Answers-Looking for job openings, the letter of application,
the resume, the application, the interview, and thank-you letter
Characteristics of Entrepreneurs - Answers-There own business, hardworking, risk-
taker, independent, confident
Important elements for working for someone else. - Answers-your success depends on
everyone, pre-determined range for salary, responsibility in employee handbook.
, Important elements for working for yourself. - Answers-Own hours, make your own
rules, and own pay.
Three mandatory deductions from a paycheck. - Answers-State income tax, federal
income tax, and social security tax.
The set of intangible assets individuals bring to their work: knowledge, skills, talent, and
health. - Answers-Human capital
Money a person receives in exchange for work or use of property. - Answers-Income
Extra money given for good service is called - Answers-Tip
Example tuition and books - Answers-Direct costs
Income that an individual could otherwise have earned during time spent in school. -
Answers-Indirect costs
Money earned by an employee in one year is called - Answers-Annual income
Earning a percentage total sales is called - Answers-Commission
Which level of formal education results in the highest income? - Answers-Professional
degree
Lawyer, MD, etc. - Answers-Professional degree
This tax helps pay for services provided by the federal government, such as defense,
human services, and the monitoring and regulation of trade. - Answers-Federal Income
Tax
This tax helps pay for services provided by state government, such as roads, safety,
and health. - Answers-State income tax
This tax helps pay for services provided by the city or other local government, such as
schools, police, and fire protection. - Answers-Local income tax
This tax provides for old-age, survivors, and disability insurance. - Answers-FICA:
Social Security tax
This tax provides for hospital insurance for the elderly. - Answers-FICA: Medicare tax
Bi-weekly - Answers-26
Weekly - Answers-52
ANSWERS.
The next best choice you could have made, but did not make. - Answers-Opportunity
Cost
Some opportunity costs for the Robinsons. - Answers-Having less time to relax, less
time to go out to dinner, and less money to spend.
Physical, intellectual, and creative talents of people. - Answers-Human resources
Gifts of nature. Includes, water, forests, natural gas, oil, and climate. - Answers-Natural
resources
Goods that are used to produce other goods and services. Includes, tools, factories,
equipment, and office buildings. - Answers-Capital resources
Is not referred as money, but is referred as items producing something else. - Answers-
Capital
A medium exchange which allows you to get goods and services - Answers-Money
Why should you stay in school and earn your high school diploma instead of dropping
out? - Answers-Higher income, job opportunities, getting a degree, and making family
proud.
What is cost of dropping out of school? - Answers-Not getting an education, lower
income, less job opportunities, inability to attend college.
Why should you save money? - Answers-You won't be in debt.
Is important b/c the grids gives a step-by-step process in what you like. Also a clearer
view in what you think you like and what you don't like. - Answers-Decision-making
Job Application Process - Answers-Looking for job openings, the letter of application,
the resume, the application, the interview, and thank-you letter
Characteristics of Entrepreneurs - Answers-There own business, hardworking, risk-
taker, independent, confident
Important elements for working for someone else. - Answers-your success depends on
everyone, pre-determined range for salary, responsibility in employee handbook.
, Important elements for working for yourself. - Answers-Own hours, make your own
rules, and own pay.
Three mandatory deductions from a paycheck. - Answers-State income tax, federal
income tax, and social security tax.
The set of intangible assets individuals bring to their work: knowledge, skills, talent, and
health. - Answers-Human capital
Money a person receives in exchange for work or use of property. - Answers-Income
Extra money given for good service is called - Answers-Tip
Example tuition and books - Answers-Direct costs
Income that an individual could otherwise have earned during time spent in school. -
Answers-Indirect costs
Money earned by an employee in one year is called - Answers-Annual income
Earning a percentage total sales is called - Answers-Commission
Which level of formal education results in the highest income? - Answers-Professional
degree
Lawyer, MD, etc. - Answers-Professional degree
This tax helps pay for services provided by the federal government, such as defense,
human services, and the monitoring and regulation of trade. - Answers-Federal Income
Tax
This tax helps pay for services provided by state government, such as roads, safety,
and health. - Answers-State income tax
This tax helps pay for services provided by the city or other local government, such as
schools, police, and fire protection. - Answers-Local income tax
This tax provides for old-age, survivors, and disability insurance. - Answers-FICA:
Social Security tax
This tax provides for hospital insurance for the elderly. - Answers-FICA: Medicare tax
Bi-weekly - Answers-26
Weekly - Answers-52
