AnswersFL-2102373-Personal Finance and Money Management HonorsUnit Test

Unit Test — Unit test Answers

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1
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A
Harry and Helen will owe an additional $193.
B
Harry and Helen will owe an additional $3,104.
C
Harry and Helen will receive a refund of $724.
D
Harry and Helen will receive a refund of $555.
2
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Mia typically works 40 hours or more each week; however, she can set her schedule. She is paid based on the company’s profits.Which best explains Mia’s employment status?

A
Mia is an hourly employee of the company.
B
Mia is a freelance contractor with the company.
C
Mia is an entrepreneur who owns the company.
D
Mia is a salaried exempt employee of the company.
3

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $235,430. Use $106,800 for maximum taxable earnings.

A
Social Security tax: $1,459.67, Medicare tax: $341.37
B
Social Security tax: $14,596.66, Medicare tax: $3,413.70
C
Social Security tax: $662.16, Medicare tax: $341.37
D
Social Security tax: $6,621.60, Medicare tax: $3,413.70
4

Elijah has an idea for a new business.Which step provides the greatest risk for Elijah as he works to start his business?

A
Elijah reads websites and blogs that share advice from small business leaders.
B
Elijah approaches several banks with his business plan to acquire a start-up loan.
C
Elijah explores programs that provide funding backed by the federal government.
D
Elijah joins professional organizations that support small business owners around the country.
5

Read the scenario.Mia has been saving up to attend a local music festival. Tickets are pricey, but it's a rare chance to see many of her favorite artists. While shopping, she saw a sale on trendy sneakers that her friends had been talking about. Despite already having a good pair, she gave in to the impulse and bought the sneakers with her festival savings. She believed that she could earn the money back before the festival.How did present bias affect Mia's financial decision?

A
It caused Mia to underestimate the effort needed to save again for the festival tickets.
B
It made Mia believe that the sneakers were a necessary purchase, despite already having a good pair.
C
It convinced Mia that fitting in with her friends was worth more than the future festival experience.
D
It led her to prioritize immediate satisfaction by buying sneakers over saving for the music festival.
6

Read the scenario.Jeremiah has been taking care of a native plant garden to support local wildlife. While browsing for garden supplies at his local store, he spots trendy sneakers that his classmates have been talking about. Despite being on sale, they are not eco-friendly like his usual purchases.Which action demonstrates the influence of Jeremiah’s values on his spending decision?

A
Drawn by the sale, Jeremiah buys the sneakers even though they are not eco-friendly.
B
Jeremiah opts for a donation, avoiding both his preferences and the latest trends.
C
Jeremiah invests in new native plants for his garden, honoring his commitment to sustainability.
D
Despite the sneaker sale, Jeremiah opts to keep his money, still undecided about the garden or shoes.
7

Tax returns filed manually have a 20% chance of containing errors, while tax returns filed electronically have a 0.05% chance of containing the same. If 2.7 million tax returns are filed each way, how many more erroneous manually filed returns will there be than erroneous electronically filed returns?

A
270,675
B
538,650
C
541,350
D
269,325
8

The earnings of two employees are given below:Employee A: 6% commission on all salesEmployee B: 4% commission on the first $80,000 and 8% on anything over $80,000How much more does a straight commission employee make than the graduated commission employee for sales of $100,000?

A
$1,200
B
$1,600
C
$2,000
D
$3,200
9

Analyze the following budget, with an income of $600, to determine how much can be spent on food for the month. Month________Budgeted AmountCell Phone$65Food$___Entertainment$95College Savings$200Car Expenses - Gas, Insurance$160

A
$210 can be spent on food.
B
$145 can be spent on food.
C
$80 can be spent on food.
D
$260 can be spent on food.
10

Predict how much money can be saved without having a negative actual net income. Monthly Budget Budgeted Amount Actual Amount Income Wages Savings Interest $1150 $25 $900 $25 Expenses Rent Utilities Food Cell Phone Savings $400 $100 $250 $75 $200 $400 $80 $200 $75 $____ Net Income $150 $____

Question illustration
A
It is not possible to save any money this month without having a negative actual net income.
B
$170 can be saved resulting in an actual net income of $0.
C
$200 can be saved resulting in an actual net income of $150.
D
As long as you are saving money, you will not have a negative actual net income.
11

Tamara earns her living as a salary plus commission employee. Her annual salary is $48,000, and she earns 4% commission on all sales she makes. If Tamara wants to make a total of $6,000 this month, how much in sales does she need to have?

A
$30,000
B
$50,000
C
$100,000
D
$150,000
12

Read the passage.Max's first guitar holds a special place in his heart. Despite being offered a fair price for it, he refuses to sell it, claiming its unique sound and sentimental value make it priceless.Which scenario demonstrates the influence of the endowment effect on Max?

A
Max is influenced by his peers' valuation of his guitar, skewing the guitar’s worth.
B
Max asks for more than the market value due to his sentimental attachment to the guitar.
C
Max is setting a high initial selling price to give him an edge over negations during the sale.
D
Max believes the guitar's unique sound justifies a higher price, independent of market value.
13

Read the scenario.Dina is shopping for new art supplies. She sees a set of brushes priced at $19.99, which seems like a bargain at just under $20. Next to them is an offer for a monthly art supply subscription box, which includes brushes and other art materials, for $18 per month with a six-month commitment.What might make Dina lean towards buying the individually priced brushes rather than the subscription box?

A
A one-time purchase can feel easier and less financially binding.
B
Dina might prefer to select her art supplies each month personally.
C
The $19.99 price of the brushes creates the illusion of a better deal.
D
Immediate brush ownership without a long-term commitment appears simpler.
14

The actual income for this month has been reduced by $200. How can this budget be modified so there will be a positive actual net income? Monthly BudgetBudgeted AmountActual AmountIncome Wages$1250$1050Expenses Rent Utilities Food Clothes Cell Phone$450$150$220$200$75$____$____$____$____$____Net Income$155$____

A
This budget can be modified by increasing the amount spent on food and utilities and decreasing the amount spent on clothes and rent, thereby maintaining a positive actual net income.
B
This budget can be modified by reducing the amount spent on rent and utilities, thereby reducing overall expenses to have the maximum amount of money for all other expenses.
C
This budget can be modified by reducing the amount spent on food and clothes, thereby reducing overall expenses to have the maximum amount of money for fixed expenses and maintaining a positive actual net income.
D
This budget cannot be modified.
15

Which is a monetary benefit of employment?

A
salaries
B
paid time off
C
life insurance
D
health insurance
16

Which rewards are consistent with that of a self-employed entrepreneur?

A
The entrepreneur receives paid sick time.
B
The entrepreneur has a regular work schedule.
C
The entrepreneur has control of the development of the company’s culture and core values.
D
The entrepreneur has a guaranteed paycheck each week regardless of the company's success.
17

[BLANK]

A
withholding amount
B
income tax
C
tax rate
18

Which statement best explains a grant?

A
A grant is money awarded to a student, usually based on financial need.
B
A grant is aid given to a student by an institution, often based on academic success.
C
A grant is money borrowed by a student to pay for an education that will need to be repaid.
D
A grant is the price of attending classes at a school.
19

A restaurant worker earns a set amount per hour from their employer. They also receive tips from customers. Their earnings most closely resemble those of which of the following?

A
An employee working on straight commission
B
An employee working on commission plus salary
C
An employee working on a piece-rate basis
D
An employee working on a fixed salary
20

This graph shows student loan debt in the United States from 1994 to 2009.

Question illustration
A
Student loan debt will most likely decrease in the coming years.
B
Students have taken out higher and higher loans since 1994.
C
Enrollment for higher education will soon begin to decrease.
D
Tuition for higher education has risen steadily since 1994.

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