FINANCIAL LITERACY STANDARD 1
TEST REVIEW AND CHOICES.
Define and Give Example of Opportunity Cost - Answers-A value of something that
must be given up to acquire or achieve something else
Ex: You give up to go watch a movie so you can study for a test and get a good grade
on it.
Define and Give Example of Human Capital - Answers-The skills that an individual has
that be used to create economic value
Ex: Having the knowledge gained from your education and getting a job to earn money.
Define and Give Example of Long Term Goals - Answers-Goals that take 5 or more
years to achieve
Ex: Graduating college, owning a home
Define and Give Example of Medium Term Goals - Answers-Goals that take 1 to 3
years to achieve
Ex: Buying a car or graduating high school
Define and Give Example of Short Term Goal - Answers-Goals that can be reached in a
few months
Ex: Getting good grades, passing a audition
Define and Give Example of Fixed Expense - Answers-an expense that will be the same
total amount week to week or month to month
Ex: Mortgage, rents payments, and car payments
What are 3 required payroll deductions? - Answers-Medicare, Social Security, and
Federal Taxes
What items are subtracted from your gross pay? - Answers-Taxes and Social Security
What is one benefit that many employers offer to their employees? - Answers-401K,
Retirement Plan and Medicare Insurance
How do you calculate net income from gross income and deductions? - Answers-Add all
the deduction first, then multiply it by the gross income and finally subtract the number
you got from the gross income
What are the three types of goals? - Answers-Short, Medium, and Long Term Goals.
TEST REVIEW AND CHOICES.
Define and Give Example of Opportunity Cost - Answers-A value of something that
must be given up to acquire or achieve something else
Ex: You give up to go watch a movie so you can study for a test and get a good grade
on it.
Define and Give Example of Human Capital - Answers-The skills that an individual has
that be used to create economic value
Ex: Having the knowledge gained from your education and getting a job to earn money.
Define and Give Example of Long Term Goals - Answers-Goals that take 5 or more
years to achieve
Ex: Graduating college, owning a home
Define and Give Example of Medium Term Goals - Answers-Goals that take 1 to 3
years to achieve
Ex: Buying a car or graduating high school
Define and Give Example of Short Term Goal - Answers-Goals that can be reached in a
few months
Ex: Getting good grades, passing a audition
Define and Give Example of Fixed Expense - Answers-an expense that will be the same
total amount week to week or month to month
Ex: Mortgage, rents payments, and car payments
What are 3 required payroll deductions? - Answers-Medicare, Social Security, and
Federal Taxes
What items are subtracted from your gross pay? - Answers-Taxes and Social Security
What is one benefit that many employers offer to their employees? - Answers-401K,
Retirement Plan and Medicare Insurance
How do you calculate net income from gross income and deductions? - Answers-Add all
the deduction first, then multiply it by the gross income and finally subtract the number
you got from the gross income
What are the three types of goals? - Answers-Short, Medium, and Long Term Goals.
