Income and Economy Quiz

What is income?

• Money earned from hourly wages or salary, including tips

• Only money received from investments

• Only government payments to individuals

• Money received from gifts

What is an example of an entitlement?

• Social Security

• Capital gains

• Rental income

• Freelance work

What are the three types of income mentioned?

• Earned, passive, and capital gains

• Salary, wages, and tips

• Investments, entitlements, and wages

• Freelance, gig, and rental

What is earned income?

• Income from wages or self-employment

• Income from investments

• Income from entitlements

• Income from gifts

What is a gig economy?

• An economy of independent contractors working temporary jobs

• An economy based on full-time employment

• An economy where only government jobs are available

• An economy focused on manufacturing

What is passive income?

• Income from investments such as stocks, bonds, and rental property

• Income from a regular job

• Income from freelance work

• Income from government benefits

What is a capital gain?

• Income from selling stocks at a profit

• Payments of cash or stocks to investors

• Interest from savings accounts

• Income from rental properties

How often are dividends typically paid?

• Once a year

• Twice a year

• Four times a year

• Monthly

What is the formula for calculating net income for businesses?

• Revenue - cost of goods sold - expenses

• Revenue + expenses - cost of goods sold

• Revenue - expenses + cost of goods sold

• Revenue + cost of goods sold + expenses

What is adjusted gross income (AGI)?

• Income before any tax adjustments

• Income after all expenses are paid

• Income left after tax adjustments

• Income from dividends and interest