What is true about jobs that are paid in cash? (1 point)
Responses
All jobs paid out in cash are illegal.
All jobs paid out in cash are illegal.
If you are paid in cash, you still have to pay taxes.
If you are paid in cash, you still have to pay taxes.
Cash is one of the most common ways companies pay their employees.
Cash is one of the most common ways companies pay their employees.
You can only get paid in cash if the amount is under $100.
You can only get paid in cash if the amount is under $100.
Which is true of a flexible spending account but not a health savings account?(1 point)
Responses
If you change jobs, you keep the account and all the money in it.
If you change jobs, you keep the account and all the money in it.
You can use it to pay for doctor visits.
You can use it to pay for doctor visits.
You can get one only if you have a health insurance plan with a high deductible.
You can get one only if you have a health insurance plan with a high deductible.
If you don’t spend it within a certain period of time, part or all of it reverts to your employer.
If you don’t spend it within a certain period of time, part or all of it reverts to your employer.
If you don’t spend it within a certain period of time, part or all of it reverts to your employer.
Which is true of a health savings account but not a flexible spending account?(1 point)
Responses
You can use it to pay for prescription medicines.
You can use it to pay for prescription medicines.
You can use it to pay for over-the-counter medicines.
You can use it to pay for over-the-counter medicines.
You must spend the money in it within a certain period of time.
You must spend the money in it within a certain period of time.
You can get the account only if you have a health insurance plan with a high deductible.
You can get the account only if you have a health insurance plan with a high deductible.
Which of the following is a benefit that an employer might offer?(1 point)
Responses
life insurance
life insurance
“Take Your Child to Work” Day
“Take Your Child to Work” Day
a flexible spending account
a flexible spending account
supportive workplace
supportive workplace
free lunch from local deli on Fridays
All of the options listed are potential benefits that an employer might offer.
Consumption and Benefits Unit Test
9 of 199 of 19 Items
Question
Which of the following is true of Social Security but not Medicare?(1 point)
Responses
Money withheld from your paycheck is used to pay benefits to people who are collecting them now.
Money withheld from your paycheck is used to pay benefits to people who are collecting them now.
Participation in the program is mandatory.
Participation in the program is mandatory.
It provides benefits to people with disabilities.
It provides benefits to people with disabilities.
It pays benefits to retirees.
It pays benefits to retirees.
Money withheld from your paycheck is used to pay benefits to people who are collecting them now.
Consumption and Benefits Unit Test
10 of 1910 of 19 Items
Question
Why would someone choose to have extra money withheld from his paycheck for federal taxes?(1 point)
Responses
A person lives in a state with high income taxes and wants to make sure enough taxes are withheld.
A person lives in a state with high income taxes and wants to make sure enough taxes are withheld.
This person considers himself a patriot and wants to pay more taxes.
This person considers himself a patriot and wants to pay more taxes.
This person chose an insurance plan with a high deductible.
This person chose an insurance plan with a high deductible.
This person did not want to risk having too little money withheld and facing a penalty when filing their tax return.
This person did not want to risk having too little money withheld and facing a penalty when filing their tax return.
This person did not want to risk having too little money withheld and facing a penalty when filing their tax return.
Consumption and Benefits Unit Test
11 of 1911 of 19 Items
Question
What is defined as net pay?(1 point)
Responses
It is the total amount of money a worker earns in a given pay period.
It is the total amount of money a worker earns in a given pay period.
It is the money that is subtracted from gross pay to pay for benefits.
It is the money that is subtracted from gross pay to pay for benefits.
It is the money that is withheld from gross pay to pay taxes.
It is the money that is withheld from gross pay to pay taxes.
It is the money left over after deductions are removed and taxes are withheld from gross pay.
It is the money left over after deductions are removed and taxes are withheld from gross pay.
What is one possible con of working a salaried job? (1 point)
Responses
You have to make a certain number of sales in order to receive your full salary.
You have to make a certain number of sales in order to receive your full salary.
You do not get time off for holidays or weekends.
You do not get time off for holidays or weekends.
You do not have the opportunity to make overtime.
You do not have the opportunity to make overtime.
You do not get paid more even if you have to work after hours to get a job done.
You do not get paid more even if you have to work after hours to get a job done.
Which of the following is an advantage of buying your car over leasing?(1 point)
Responses
When you want to get a new car, you have to deal with selling your current one.
When you want to get a new car, you have to deal with selling your current one.
The down payment for a car loan is usually smaller than the security deposit for a lease.
The down payment for a car loan is usually smaller than the security deposit for a lease.
You are always driving a new car.
You are always driving a new car.
You will end up owning the car, which may be worth a fair amount of money.
You will end up owning the car, which may be worth a fair amount of money.
You will end up owning the car, which may be worth a fair amount of money.
Which of the following is an advantage of buying your home over renting?
(1 point)
Responses
You do not have to worry about the housing market in your area.
You do not have to worry about the housing market in your area.
The amount you pay each month is set by the terms of your mortgage.
The amount you pay each month is set by the terms of your mortgage.
If something breaks, you have to fix it or pay to have it fixed.
If something breaks, you have to fix it or pay to have it fixed.
Your mortgage payments will far exceed the value of your home.
The amount you pay each month is set by the terms of your mortgage.
Consumption and Benefits Unit Test
15 of 1915 of 19 Items
Question
What is the main reason to avoid renting to own?
(1 point)
Responses
If the item breaks, you have to buy a new one.
If the item breaks, you have to buy a new one.
You are buying used merchandise.
You are buying used merchandise.
It can be weeks before the item is delivered.
It can be weeks before the item is delivered.
You will pay much more than the cost of the item in a short period of time.
You will pay much more than the cost of the item in a short period of time.
Consumption and Benefits Unit Test
16 of 1916 of 19 Items
Question
Which of the following is true of credit cards?
(1 point)
Responses
You cannot use them to buy something that costs more money that you have in the bank.
You cannot use them to buy something that costs more money that you have in the bank.
They generally charge 3% to 5% interest.
They generally charge 3% to 5% interest.
When you use them, you never really know how much you owe.
When you use them, you never really know how much you owe.
They can be used to make online purchases.
They can be used to make online purchases.
Which of the following is true of store credit cards?
(1 point)
Responses
They are co-branded with Visa, MasterCard, or American Express.
They are co-branded with Visa, MasterCard, or American Express.
You can use them anywhere.
You can use them anywhere.
Most give you 28 days before they start to accrue interest.
Most give you 28 days before they start to accrue interest.
They usually have interest rates of 5 to 10 percentage points higher than those of ordinary credit cards
They usually have interest rates of 5 to 10 percentage points higher than those of ordinary credit cards.
Malik is a restaurant server. His friend Yolanda is a clerk at the grocery store. What is similar about the way Malik and Yolanda get paid? What is different? Write 3–5 sentences to explain your answer. (4 points)
Similar to Malik, Yolanda and other clerks at the grocery store receive their payment in the form of wages for the work they perform. Both Malik and Yolanda have an employer from whom they receive their pay, whether it is the restaurant or the grocery store. Additionally, both may be subject to deductions for taxes and other benefits, such as healthcare or retirement plans.
However, there are also differences in the way Malik and Yolanda get paid. Firstly, the nature of their work may lead to different compensation structures. As a server, Malik may rely heavily on tips as part of his income, while Yolanda may have a more fixed hourly wage. Secondly, the frequency and mode of payment may vary. Malik may receive his pay in cash from the restaurant, while Yolanda may have her wages directly deposited into a bank account.
Furthermore, Malik's income may be more variable due to the fluctuating nature of tips, while Yolanda's income may be more stable and predictable. This could impact their budgeting and financial planning strategies.
Use the following scenario to answer the question.
Vikraj is about to start a job as a realtor. He has a choice between two companies. Job A pays an hourly wage of $13. It also pays commission every month if he reaches certain sales goals. This commission begins at $1,000 and can be as high as $5,000. Job B pays an hourly wage of $19 an hour. It does not offer commission. Vikraj can work 30 hours a week.
In 1–2 sentences, explain which job Vikraj should take and why.