Financial Literacy Quiz - INCOME

Answer each question by selecting the letter that you believe to be the correct response. This survey will measure your level of financial literacy in the "income" category. Overall competency in this category will enable you to use a career plan to develop personal income potential. A financially literate person should be able to explore career options, identify sources of personal income, and describe factors affecting take-home pay.

If the demand increases more for computer experts than for office clerks, what would you expect to happen to the average salary for both?

The relative salary for the two occupations would not change.
The salary of computer experts will go up relatively more than for office clerks.
The salary of computer experts will go down compared to the salary of office clerks.
The salary of office clerks will go up relatively more than for computer experts.
If a computer programmer spends her free time taking work-related computer courses while another worker with the same salary and responsibilities spends her free time taking piano lessons, what is likely to happen to their salaries in the future?

They will continue to make the same salaries.
The worker taking computer courses will make more money because she is more valuable to her company.
The worker taking piano lessons will make more money because the other worker is likely to be laid off.
The worker taking piano lessons will make more because she is more versatile.
Rebecca has a good job in a shirt factory. During the past two years, the country in which Rebecca works raised taxes on its businesses so that taxes are much higher than in other countries. What effect is this likely to have on Rebecca’s job?

Rebecca’s company may consider moving to a lower-tax country, forcing the termination of her job.
The factory will hire more workers to produce and sell more shirts to offset the taxes, giving job security to Rebecca.
Generally, higher business taxes have no effect on jobs in a factory.
Rebecca is likely to get a raise to offset the effect of higher taxes.
Which of the following is true about inflation?

Lenders have more buying power in the future.
People can buy more with the savings that they have.
People with fixed income have less buying power.
Dividend income generally increases.
John quit his job that paid him $50,000 a year and started a consulting business. He withdrew $10,000 from his savings account to buy supplies. He rented a fully equipped office. Which of the following best describes the total true costs of running his business?

Supplies
Supplies and rent
Supplies, rent, and salary given up
Supplies, rent, salary given up, and interest
How do income taxes affect the income that people have to spend?

They decrease the amount of goods and services that can be purchased.
They discourage saving, thereby increasing income to be spent.
They increase the amount that people can spend because the government provides public goods with the taxes.
They decrease spendable income in deflationary times and increase spendable income in inflationary times.
If an employer begins providing free lunches to its workers without decreasing salary or other benefits, which of the following is true?

Employees will be given more money to spend.
Employees will be given less money to spend.
Employees will have less money to spend outside of work.
Employees will have more money to spend outside of work.
Who is most likely to be unemployed?

Post graduate/ professional.
University graduate but not professional.
High school graduate
1 – 9 years of school graduate
Which of the following best describes the primary source of income for most people, ages 20-35?

Income from working
Profits from business
Dividends and interest
Rents

Financial Literacy Quiz - INCOME

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