Personal Financial Responsibility: Chapter 2 Review

Salaried workers usually do not keep time cards or count hours worked and do not receive overtime pay.

• True
• False

When filing taxes, you may claim an exemption for each of your dependents but not for yourself.

• True
• False

With e-filing, refunds may be received much more quickly than when a paper return is filed.

• True
• False

Perks provide emotional satisfaction or social status rather than money.

• True
• False

Interests and dividends are forms of earned income that are taxable.

• True
• False

A business that starts small but is designed for unlimited growth is called

• a lifestyle business
• an avocation
• a venture business
• none of these

The following are examples of pay without work EXCEPT

• vacation pay
• profit sharing
• sick pay
• personal leave

The following are examples of unearned income EXCEPT

• interest
• dividends
• government transfer payments
• public goods

Which of the following is true of public goods?

• everyone benefits from them.
• no one can be excluded from them.
• people do not benefit in direct proportion to taxes paid.
• All of these are characteristics of public goods.

Which of the following is considered to be a progressive tax?

• FICA
• property tax
• federal income tax
• sales tax