AnswersFL-2102373-Personal Finance and Money Management HonorsSocial Security and Medicare

Social Security and Medicare — Unit test Answers

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Predict how much money can be saved without having a negative actual net income.Monthly BudgetBudgeted AmountActual AmountIncome Wages$1025$675Expenses Rent Utilities Food Cell Phone Savings $300$100$175$75$300$300$100$200$75$____Net Income$75$____

A
It is not possible to save any money this month without having a negative actual net income.
B
$350 can be saved resulting in an actual net income of $0.
C
$200 can be saved resulting in an actual net income of $75.
D
Because there is a $75 budgeted net income, that $75 can be put towards savings.
2
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Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000. Use $106,800 for maximum taxable earnings. (Soc Sec 6.2%, taxed up to $106,800 and Medicare 1.45%).

A
Social Security tax: $77,500.00, Medicare tax: $18,125.00
B
Social Security tax: $7,750.00, Medicare tax: $1,812.50
C
Social Security tax: $66,216.00, Medicare tax: $18,125.00
D
Social Security tax: $6,621.60, Medicare tax: $1,812.50
3

Analyze the following budget, with an income of $750, to determine how much can be spent on food for the month. Month________Budgeted AmountFood$___Personal Items$20Cell Phone $75Entertainment$85Car Expenses – Gas, Insurance$260College Savings$250

A
No more than $70 can be spent on food.
B
No more than $75 can be spent on food.
C
No more than $80 can be spent on food.
D
No more than $60 can be spent on food.
4

Antonio is ready to move out of his parent's house and live on his own. He found a great apartment that has all utilities included. His job as an assistant plumber requires him to have a car, but his hours are flexible enough to give him time on the weekends to have fun with his friends. What is the best way Antonio's budget can be modified to help him save enough for the $200 down payment and make the $500 monthly rental payment? Monthly Budget Old Budget New Budget Income Wages $1500 $1500 Expenses Food Cell Phone Savings Entertainment Car Expenses . $250 $175 $200 $200 $300 . $____ $____ $____ $____ $____ Net Income $375 $____

A
Antonio could keep his budget the same and hope he gets a raise at work.
B
Antonio could reduce his monthly entertainment expenses by $100 to help pay the monthly rent. He could take $200 out of savings once for the deposit.
C
Antonio could live at his parent’s house for one more month and save his net income. After one month of living at home, he would have enough additional money for the deposit and one year’s rent at the apartment.
D
Antonio could reduce his monthly entertainment expenses by $75 and his food expenses by $50 to pay the monthly rent. He could take $200 out of savings once for the deposit.
5

Select the budget that would most quickly achieve the financial goal of saving $6000 for college tuition.Monthly BudgetBudget ABudget BBudget CBudget DIncome$1250$1000$1125$1500Expenses Rent Utilities Food Cell Phone Savings Personal Items Entertainment Car Expenses Clothing$200$70$150$0$600$120$30$0$20$200$80$250$75$50$10$100$200$0$300$75$160$40$200$25$20$0$300$0$0$400$110$450$50$150$250$50Net Income$60$35$5$40

A
Budget A
B
Budget B
C
Budget C
D
Budget D
6

What is one difference between a vocational school and on-the-job training?

A
A vocational school degree takes one year to earn. On-the-job training takes two or more years.
A
A vocational school degree takes weeks or months to earn. On-the-job training takes two years or fewer.
A
A vocational school is usually paid for by the worker. On-the-job training is usually paid for by the employer.
A
A vocational school is usually paid for by the employer. On-the-job training is usually paid for by the worker.
7

You have a gross income of $117,151 and are filing your tax return singly. You claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. The standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. What is the difference between your adjusted gross income and your taxable income?

A
$16,053
B
$9,350
C
$10,825
D
$14,475
8

This table compares the requirements for a career as an athletic trainer or an air traffic controller. A student who is interested in becoming an air traffic controller will make

Question illustration
A
more money than an athletic trainer but will have a harder time finding a job.
B
more money than an athletic trainer and will have an easier time finding a job.
C
less money than an athletic trainer but will have an easier time finding a job.
D
less money than an athletic trainer and will have a harder time finding a job.
9

Alexa has finished her culinary training program and is now working full-time as a chef in a hotel resort restaurant. She has tripled her salary from when she was working part-time to pay her expenses through school. How should this increased income affect her budget? Make comparisons with her previous budget and her current budget. Monthly Budget Previous Budget Current Budget Income Wages $800 $2400 Expenses Rent Utilities Groceries Savings Bus Pass $300 $60 $200 $100 $30 $300 $60 $250 $150 $30 Net Income $110 $1610

A
Alexa is earning quite a bit more money and her expenses reflect the change in income.
B
Alexa is earning quite a bit more money than she was previously. She has worked hard and deserves to spend a lot of money on herself.
C
Alexa is earning quite a bit more money than she was previously. This would be a good time for her to re-evaluate her budget. Part of the extra money she is making could be put in her savings account.
D
Her increased income should have no effect on her financial decisions.
10

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is $50,760. Assuming that he will receive 42% of his average annual salary, what will be his annual Social Security benefit?

A
$2,131.92
B
$21,319.20
C
$213,192.00
D
$2,131,920.00
11

Which is a monetary benefit in a compensation package?

A
salary increase
B
retirement plan
C
medical insurance
D
flexible spending account
12

Sofia still lives at home, but helps with the rent paying $200 per month. She has a job that pays about $700 per month after taxes. She has to pay for her own personal items such as clothing and toiletries spending about $120 per month. Going out with friends is important to her, but she also wants to save money to buy her own car. Select the budget that would best help meet her goals.Monthly BudgetBudget ABudget BBudget CBudget DIncome$700$700$700$700Expenses - Rent Personal Items Entertainment Savings$200$120$100$250$200$120$300$50$200$120$200$150$200$120$325$25

A
Budget A
B
Budget B
C
Budget C
D
Budget D
13

Which is a kind of federal payroll tax?

A
medicare tax
B
sales tax
C
property tax
D
progressive tax
14

The image shows a sales receipt.

Question illustration
A
6.25 percent
B
8.5 percent
C
10 percent
D
10.85 percent
15

Read the scenario.Jasmine is at a store looking for school supplies. She sees a sign offering a "Buy-One-Get-One-Free" (BOGO) deal on notebooks, which are priced at $2 each. In another, there's a 50% off sale on individual notebooks, normally $4, now $2 each. Jasmine gravitates towards the BOGO offer.Why might Jasmine perceive the BOGO offer as more attractive than the 50% off sale?

A
BOGO could be seen as less restrictive compared to a straight discount.
B
The word "free" in BOGO offers creates a perception of additional value.
C
BOGO could be perceived as a limited-time offer, making it seem more urgent.
D
The multiple items in BOGO could be perceived as a way to share costs with friends.
16

Analyze the following budget, with an income of $750, to determine how much can be spent on food for the month. Month________Budgeted AmountFood$___Personal Items$20Cell Phone $75Entertainment$85Car Expenses – Gas, Insurance$260College Savings$250

A
No more than $70 can be spent on food.
B
No more than $75 can be spent on food.
C
No more than $80 can be spent on food.
D
No more than $60 can be spent on food.
17

Which is a risk of being an entrepreneur?

A
An entrepreneur can manage their own time.
B
An entrepreneur can reap profits from their business.
C
An entrepreneur can face bankruptcy in their business.
D
An entrepreneur can manage and pay their income taxes.
18

Which is a kind of federal payroll tax?

A
medicare tax
B
sales tax
C
property tax
D
progressive tax
19

Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income?

A
$50,193
B
$41,843
C
$48,403
D
$52,793
20

Which scenario best represents a financial decision that was influenced by personal value?

A
Holden attends a popular camp selected by friends even though he prefers another camp.
B
Bindi selects a law major based on other people’s advice despite her interest in art.
C
Zola purchases a recycled-material backpack, valuing sustainability over style.
D
Manuel habitually upgrades to a new iPhone, following a pattern rather than preference.

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