Financial Literacy Midterm

Last month, Jorge was paid a total of $9,000, which included a bonus of $1,500. What is Jorge's gross bimonthly pay during a month when a bonus is not paid?

• $7,500
• $5,250
• $9,000
• $3,750

A greater withholding allowance results in ________________.

• a larger amount of take-home pay
• a smaller amount of take-home pay
• more taxable income
• less taxable income

Jeffery worked 48 hours this week. His regular hourly wage is $18.50. For every hour each week he works over 40, he is paid 1.5 times his regular hourly wage. What is Jeffery's gross pay for this week?

• $962
• $1,332
• $888
• $1,850

If taxes due are greater than the taxes withheld, then _____________________.

• money is refunded
• money is owed
• you should make up more donations
• you should get a rapid refund

Leona is a real estate agent who earns straight commission based on the homes that she sells. Last month, she sold four homes with sales prices of $144,000, $177,000, $152,000, $193,000. She earned a 3% commission on each sale. What was Leona's total commission?

• $199.80
• $1,998
• $19,980
• $199,800

Bartering is trading one thing of value for another.

• True
• False

Workers who are paid a salary are paid by the hour.

• True
• False

Social security taxes pay for retirement and disability benefits.

• True
• False

A federal income tax return is used to calculate taxes owed to the federal government.

• True
• False

Unearned income is the money a person gets from doing a job.

• True
• False