Personal Budget — Unit test Answers

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

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?

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

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.

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?

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?

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 $____

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

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Which is a monetary benefit of employment?

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?

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?

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?

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$155$____

Robert is currently working for a landscaping company earning $1520 per month. He has a dream of starting his own landscaping company and figures he would need to save $5000 to buy his own equipment. Select the budget that would help Robert most quickly achieve his financial goal of starting his own business, while still meeting his basic needs. Monthly Budget Budget A Budget B Budget C Budget D Income $1520 $1520 $1520 $1600 Expenses Rent Utilities Food Cell Phone Savings Entertainment Clothing $400 $80 $250 $0 $400 $220 $130 $400 $80 $25 $75 $600 $320 $0 $400 $80 $150 $70 $500 $125 $120 $400 $80 $400 $110 $260 $200 $150 Net Income $40 $20 $75 $0

Robert and Anne, a married couple filing jointly, have an adjusted gross income of $68,676. They claim two exemptions, and can deduct $3,752 for charitable donations, $3,375 for interest on their mortgage, and $959 from city income tax. If the standard deduction for a married couple filing jointly is $8,350 and exemptions are worth $3,650 apiece, what is their total taxable income?

For each of the following wages, determine the Social Security tax that would be withheld. Use $106,800 for maximum taxable earnings. i. $23,660 ii. $89,000 iii. $166,090

Which scenario best describes herd mentality?

Determine the total annual FICA tax for an annual salary of $38,480. (FICA is 7.65%)

The diagram shows revenue from federal income taxes.