PFL 1st Semester Exam - 1, 2, 3, 4, 7, 8, 9

What is the opportunity cost of dropping out of school? [PFL#1]

• Having interesting hobbies
• A wider choice of jobs
• Lower future income
• Higher future income

Which of the following is NOT a required payroll deduction? [PFL#1]

• FICA
• State income tax
• Health insurance
• Federal income tax

John Taxpayer has a gross income of $2823.08 and $892.34 in deductions. How much would John’s paycheck be this month? [PFL#1]

• $3,715.42
• $1,900.00
• $1,930.74
• $2,823.08

The BEST description of a budget is a [PFL #1]

• financial tool for consumers who have very little money.
• set of restrictions on how you can spend your money.
• plan for saving and spending your money.
• statement of your assets and liabilities.

If you sign a lease on an apartment, your rent is a [PFL #1]

• fixed expense
• variable expense
• fixed income
• variable income

When setting long-term goals, [PFL #1]

• setting short-term and medium-term goals is not important.
• setting short-term goals should be avoided because it takes away from your long-term goals.
• they become more important than your short-term goals.
• set short-term and medium-term goals as steps to accomplish your long-term goals.

Which of the following do many employers offer as benefits to employees? [PFL #1]

• Health insurance
• Employee leave
• Retirement plans
• All of the above

Which of the following statements is TRUE? [PFL#2]

• Many people are able to cheat the government and avoid paying taxes by using phony deductions or failing to report their income appropriately.
• Taxes paid provide services that impact only quality of life in the United States, not the standard of living.
• Everyone who receives a paycheck is required to submit a tax return to the IRS by April 15.
• Individuals do not have to pay taxes if they believe it is a violation of their religious beliefs.

People pay taxes for many reasons. Which of the following is NOT one of those reasons? [PFL#2]

• controlling how their tax dollars are spent
• moral reasons
• fear of IRS penalties and imprisonment
• civic duty

If you knowingly underpay your taxes, the IRS can impose all of the following EXCEPT

• forcing your children to pay your tax burden
• assessing a penalty
• bringing charges ending in imprisonment
• collecting the taxes