EarningUnitMultipleChoiceTestBank

Name

Date

Class

Directions:Circlethecorrectanswerforeachquestion.(1pointeach)

InvestinYourselfQuestions

1.WhichofthefollowingstatementsisNOTtrue?

a.Mostpeoplehaveseveralcareersthroughouttheirlifetime.

b.Jobsarepaidpositions.

c.Peoplecandevelophumancapitalinavarietyofways.

d.Transferableskillscanbeappliedtomanypersonalandprofessionalroles.

2.Josehasbeenchallengedbyhisacademicadvisorto‘developsomehumancapital’thisschoolyear.

WhichactivitybelowwouldbetheLEASTeffectivewaytoreachthatgoal?

a.Spendadditionaltimeplayingvideogamestofurtherdevelophiseye‐handcoordination.

b.Volunteertopickuptrashalongtheroadsides.

c.Attendaworkshoponatopichehaslittleknowledgeof.

d.Askhisemployerifthereareanynewtasksatworkthathemightbeassigned.

3.One’sLifestyleisto theirStandardofLivingaspresentis to_?

a.Past

b.Recent

c.Future

d.Gift

4.Mirandaisworkingtodevelopabroadbaseoftransferableskills.Thismeansthatshe:

a.Needstomaintainatleastaparttimejobduringtheschoolyear.

b.Useheravailablehoursoutsideofschoolforpaidemploymentratherthanvolunteering.

c.Willnothaveasmuchtimetodevelopherhumancapital.

d.Willhaveasetaversatileskillthatshecanapplytomanypersonalandprofessionalroles.

5.Ericiswritingapaperontheimportanceofinvestinginyourselfandheislookingforasentencetouseasthethesisstatementforhispaper.Whichsentencebelowwouldbethebestchoice?

a.Completingyourcollegedegreeisthebestwaytoprepareforacareer.

b.Educationpaysinhigherearningsandlowerunemploymentrates.

c.Humancapitalandtransferableskillsresultfromformaltraining.

d.Investinginyourselftooearlycanleadtoalowerstandardofliving.

6.Anexampleofatransferableskillisaskill:

a.usedinyourjobthatyouacquiredthroughpastjobs,volunteering,hobbies,schoolsports,orotherlifeexperiences.

b.thatcanonlybeusedinanindividual’sjoborcareer.

c.thateachemployerrequiresyoutolearn.

d.thatislearnedatonejobandisrequiredatotherjobsaswell.

7.Loraisahighschoolcomputerandtechnologyteacher.Sheenrollsinacomputerclassatleasttwiceperyeartostaycurrentonrecenttechnologychangesandupdates.Bycontinuinghereducation,Loraisinvestinginher:

a.salary

b.humancapital

c.family

d.interestinventory

8.Individualswithmoreformaleducationaltrainingusuallyhave:

a.higherestimatedlifetimeearnings

b.lowerpersonalsatisfaction

c.greateramountsofleisuretime

d.morecomfortableworkenvironments.

CareerExplorationQuestions

9.Zoehasbeenassignedbyherschoolcounselortocompleteacareerassessment.WhichstatementBESTdescribeswhyhercounselorhassuggestedshedothis?

a.HercounselorwantsZoetofindacareerthatwillprovideahighlevelofincometosupportZoe’slifestyleandwellbeing.

b.HercounselorwantsZoetomatchherskills,abilities,interestsandvalueswithalistof

specificoccupations.

c.HercounselorwantsZoetoconductinterviewswithpeopleinherareaofinteresttodetermineifshetrulyenjoysthecareershewantstopreparefor.

d.HercounselorwantsZoetosearchforacareerthatwillallowoccupationalflexibilityandprovideforpossiblecareeradvancementasshegainsmoreexperienceworkinginherselectedcareer.

10.Joannahasarrangedtocompleteajobshadowwithaphysicaltherapisttodecideifthisisacareershewantstopursue.WhichofherconcernsissheMOSTLIKELYtohaveansweredasaresultofherjobshadow?

a.Thefutureoutlookforphysicaltherapyjobs

b.Theamountofmoneyphysicaltherapistsearn

c.Commontasksandtypicaldailyactivities

d.Opportunitiesforadvancementinthecareer

11.WhichstatementWOULDNOTbetrueaboutthevalueofcareerresearch?

a.Everyonevaluesdifferentaspectsofanoccupation.Onepersonmightvaluetheflexiblescheduleaparticularjoboffersandanothermightcaremoreabouttheamountoftrainingthat careermightrequire.

b.Currentjobavailabilityandtheoutlookforfutureemploymentareasessentialtoconsideraswhetheryouhavetheskills,interestandabilitiestopursueaparticularcareer.

c.Opinionsfromdifferentpeopleworkingintheoccupationshouldbeconsideredbeforerulingoutaparticularcareer.

d.Therearemanycareersthatwouldsupportyourwell‐being.Careerexplorationallowsyou

tofindtheonethatpaysthemostsoyourwell‐beingisenhancedtothehighestdegree.

12.Careerassessmentshelptoidentify:

a.thejobanindividualshouldhaveifhe/shewantshighwell‐being

b.positionsavailableinaparticularoccupation

c.fastestandslowestgrowingcareersinaparticularoccupation

d.possiblecareerareasrelatedtoone’sinterests

13.Inordertomakeaninformedcareerdecision,ahighschoolstudentwillwantto:

a.committoaprofessionthatrequiresacollegedegree

b.chooseacareerthatofferstheamountofmoneydesired

c.developpersonalgoals,completeacareerassessment,andresearchcareers

d.chooseatrainingprogramthatwillguaranteeemploymentafterthecourseworkiscompleted

PreparingforHigherEducationQuestions

14.WhenCharlesreceivedhiscollegeplacementtestresults,heisinformedthathewillneedremediationinmath.WhichsituationISNOTTRUEofCharles’situation?

a.Charleswillneedtotakeatleastonecoursebecauseheisnotcollege‐ready.

b.SincetheremedialcoursesCharlesmusttakewillnotcounttowardhisdegree,heneedstotake thecoursesbuttuitionisnotcharged.

c.Charlesshouldhavetakenaplacementtestearlierinhighschoolsohecouldstrengthenhisacademicskillsbeforeheadingforcollege.

d.Remediationcoursesdonotcounttowardhisdegreeprogramsohemayneedtotakeextracreditsandhiscollegedegreemaytakelongertocomplete.

15.WhichstatementisTRUEregardingcollege‐levelexpectationsforstudyingandcompletingprojects?

a.Itisbesttostudyaloneinaquietenvironment.

b.Planbackwardsfrommajordeadlines.

c.Multi‐taskingduringstudytimedevelopstheimportantskillofworkingwhilebeingdistracted,soitisokaytomessagewithfriendsorwatchTVwhilestudying.

d.Thebusieryourschedulegets,themoreimportantitistowritedownonlythemostcriticaltaskstobedone.Wastingtimewritingdownsmallerdetailsisnotrecommended.

16.Erinhasbeenincollegefor2yearsandhasdecidedthatthemajorshehasbeenstudyingisn’tforher.Changinghermajorand/orhercollegecouldresultin:

a.awell‐roundedcollegedegree.

b.theneedforbackwardsplanning.

c.losingcreditsforclassesshehasalreadytaken.

d.remediationcoursestomakeupforthechangeinmajors.

17.Davidplanstoapplyforcollegein2years.Hisguidancecounselorsuggestedthathebeginaddingitemstoa‘college/trainingapplication’folder.WhichitemsWOULDNOTbehelpfulasadditionstothisfolder?

a.copiesofawardsandachievementsheearns

b.alistofalltheextracurricularactivitieshegetsinvolvedin

c.aresumeofallcommunityserviceandvolunteerworkheisactivelyinvolvedin

d.copiesofhiselementaryandmiddleschoolreportcards

PlanningforHigherEducationQuestions

18.AsJonahplansforhisfuture,hisfamilyhaschallengedhimtocreateaSMARTgoalforhiscareereducationandtraining.WhichquestionistheLEASTIMPORTANTonetoconsideratthispoint?

a.WhatkindoftrainingandeducationdoIneedandhowmuchwillitcost?

b.IsthereacareerpathwayavailableifIcontinuemyeducationandtraining?

c.CanIgettheeducationandtrainingIneednearwhereIcurrentlylive?

d.WillajobbeavailableandwillIearnenoughinmycareertopayfortheeducationandtrainingitrequires?

19.Malloryhassetacareergoalofbecomingaveterinarianbutdoesnothavethemoneytocompletethisgoalwithouttakingoutverylargestudentloans.Shedecidestoattenda2‐yearprogramintobecomeaveterinarytechnician,andthenworkfor3yearsinthatfieldwhileshesavesmoneyforherremaining2yearsofcollegeandveterinaryschool.Mallory’splanisknownasa/an:

a.Careerpathway

b.Opportunitycost

c.Debt‐to‐incomeratio

d.SMARTgoal

20.Theofcontinuingyoureducationisthemoneyyouwouldhaveearnedifyouhaveworkedinstead.

a.Debt‐to‐incomeratio

b.Opportunitycost

c.Benefit

d.totalestimatedcost

21.Itisrecommendedthatyoureducationalloanpaymentsrequirenomorethan10‐15%ofyourestimatedstartingincome.Tocalculatethisamount,studentsneedtocalculatethe oftheireducationandtraining.

a.Opportunitycost

b.Careerpathway

c.Benefit

d.Debt‐to‐incomeratio

PayingforHigherEducationQuestions

22.Seanplanstoattendcollegein2years.Heandhisfamilyhavesavedsomemoneytohelppayforitbut hewanttoexplorewayshecanreceivemoneyheWON’Tneedtorepay.Whichsetofoptionsbelowshouldheexplore?

a.FederalPerkinsLoans,PLUSandlocalbankloans

b.FederalStudentGrants,PLUSLoans,andscholarships

c.PellGrants,Work‐study,andscholarships

d.Work‐study,scholarshipsandPLUSLoans

23.DirectSubsidizedStaffordLoansoffersomefeaturesthataredifferentwhencomparedtoborrowingmoneyfromabanktopayforcollege.WhichofthefollowingisNOTdifferencebetweenofaDirectSubsidizedStaffordLoanandatypicalbankloan?

a.InterestratesforStaffordloanstendtobehigherbecausetheloansareheldforarelativelylongperiodoftime.

b.StaffordLoanshavedefermentoptions.

c.StaffordLoanstypicallyhaveagraceperiod.

d.StudentfamiliesmustcompleteaFAFSA(FreeApplicationForFederalStudentAid)inorderto applyforaStaffordLoan.

24.Carson’sfamilyhasalwaysstruggledfinanciallyduetohisparents’leavinghighschoolbeforegraduatingandworkinglowerpayingjobstosupportthefamily.Hisparentsdon’twanthimtomakethesamemistakeandareencouraginghimtoapplyforscholarshipsandanytypeofstudentaidhemightqualifyfor.Whichapplicationwilldeterminewhichtypedofneed‐basedaidhewillqualifyfor?

a.PerkinsFederalLoanApplication

b.DirectSubsidizedStaffordLoanApplication

c.FederalWorkStudyApplication

d.FreeApplicationforFederalStudentAid(FAFSA)

25.Jaimenisstrugglingtomakehisstudentloanpaymentsaftercollege.Heisconsideringdefaultingonthestudentloan.Whichisnotapotentialconsequenceifhedecidestodefaultonthestudentloan?

a.Hecouldbedeniedcreditcards,carorhomeloans,orapartmentleases.

b.Thebankcouldrefusetoallowhimtoopenacheckingaccount.

c.Hemaynotbeabletoobtainamarriagelicense.

d.Hiswagesmaybegarnished.

LifelongEmploymentQuestions

26.SarahlearnedinherFinancialEducationclassthatsheneedstoconsidertheCostofLivingwhencomparingjoboffers.Whichstatementismostaccurate?

a.Howmuchshewillspendinmovingexpensestore‐locatetothecitywherehernewjobis.

b.Theaveragecostofbasicnecessities,suchashousingandfoodinthecitywherehernew

jobis.

c.Thetotalvalueofthebenefitspackageshewillbeofferedinhernewjob.

d.Thetotalamountofhercollegecostscomparedtothesalarysheisbeingofferedinhernewjob.

27.Theaveragecostofbasicnecessities,suchashousingandfoodforaparticularcityiscallthe:

a.StandardofLiving

b.Lifestyle

c.CostofLiving

d.EconomyofLiving

28.Stevenisconsideringtakingajobwithacompanythatisofferinggymmemberships,flexiblehours,repaymentofeducationloans,merchandisediscounts,andchildcare.Thesecomponentsofthejobofferarecalled:

a.employeebenefits

b.jobperks

c.workincentives

d.competitivehiringpractices

29.Tobeconsideredforlifelongemploymentapersonmustcontinuallymaintaintheiremployability.

Threeactionsbelowwillhelptomaintainemployability.WhichoneWILLNOT?

a.Maintainhighstandardsinhonesty,reliability,andpunctuality.

b.Adjustyouractionstobeappropriatefordifferentsituationsyoufindyourselfin,because

yourealizethatwhatisappropriateinsocialsituationsisnotnecessarilyappropriateintheworkenvironment.

c.Continuetolearnbytakingclassesandstrivingforcontinualimprovementonthejob.

d.Seekwaystoblendyourpersonalandprofessionalimagesonlinetoenablecurrentandfutureemployerstoseethatyouhaveavariedandinterestinglifebothinandoutsideofwork.

30.SusaniscurrentlyworkinginKansasCity,MOearning$30,000peryear.SheisofferedapositioninIndianapolis,INearning$32,000peryear.IfKansasCity’sCostofLivingIndexis100andIndianapolis’CostofLivingIndexis125,whichistrue?

a.SusanwillhavemorespendingpowerifshemovestoIndianapolis.

b.SusanwillhavemorespendingpowerifshestaysinKansasCity.

c.SusanwillhavethesamespendingpowerinIndianapolisasshehasinKansasCity.

d.Thereisnotenoughinformationtodecide.

WhenRobgraduatedfromcollegeheconsideredtwodifferentjoboffersbeforeacceptinghisjobasanaccountantintheITdepartmentofalocalmanufacturingplant.Helovesthathecanwalkorridehisbiketoworkeachday.HealsolovestotravelandhisjobwillrequirehimtotravelseveraltimeseachyeartoconductauditsinmanufacturingplantsthroughouttheUS,Europe,andAsia.Hereceivesamonthlysalaryandhisemployerpayshishealthinsurance.Hisemployeralsomatchesthefundshesavesinhispersonalretirementaccount.Robhasalwaysbeenveryhealthybutheappreciatesknowingthathehasseveraldaysofpaidsickleaveeachyearifheneedsthem,alongwith1weekofpaidvacation.HiscompanyisencouraginghimtocompletetheclassesheneedstoearnhisCPAbypayingforhalfofthetuitionfortheclassesheneedstotake.AnswerthefollowingquestionsaboutRobandhisjob:

31.Rob’sparentsaskedhimwhatemployeebenefitshisemployerwasproviding.Whichwouldbeconsidered

a.monthlysalary

b.locationwithinwalkingdistanceofhisapartment

c.paidsickleave

d.travelopportunities

32.WhenRobcomparedtheCostofLivingIndexforthecityhecurrentlylivesinwiththecitywheretheotherjobwaslocated,theindexforhiscitywas106andtheindexfortheothercitywas78.WhichstatementismostlikelytobeTRUE?

a.RobchosehiscurrentjobbecausetheCostofLivingIndexindicatedthatitwouldbecheapertoliveinhiscurrentcitythatitwouldhavebeenintheothercity.

b.Robchosehiscurrentjobforreasonsotherthanalowercostofliving.

c.Thecostofre‐locatingtotheothercityincreasedthecostoflivingtheresoRobchoseto

liveinhiscurrentcity.

d.Eventhoughthejobintheothercityofferedahighersalary,itwasn’tenoughtomakeupthe differenceforthatcity’shighercostofliving.

GettingPaidQuestions

33.Jamiehaselectedtobepaidbydirectdepositathernewjob.Thismeans.

a.Shewillreceiveherpaycheckmaileddirectlytohereachpayperiod.

b.Shewillreceiveherpaydirectlyintohercheckingaccountatherdepositoryinstitutionforeachpayperiod.

c.Shewillreceiveherpayautomaticallyloadedontoherpayrollcardattheendofeachpay

period.

d.Shewillreceiveherpaycheckdelivereddirectlytoheratherplaceofemploymentattheendofeachpayperiod.

34.Grossincome–deductions=

a.SocialSecurity

b.Medicare

c.netincome

d.employeebenefits

35.Shannonisreviewingherpaystubtodeterminehowmuchmoneysheearnedbeforeherdeductionsweresubtracted.Whichcolumnshouldshechecktofindthisamount?

a.NetIncome

b.HoursandEarnings

c.EmployerContributions

d.GrossIncome

36.Themostsecuremethodforanemployertopayemployeesistouse:

a.directdeposit

b.payrollcard

c.printedpaycheck

d.in‐storecredit

37.Hunterhasbeenofferedajobbyalocalmechanicwhohasofferedtopayhimincashratherthanbypaperpaycheck,directdeposit,orpayrollcard.Hunterisexcitedthattheamountofmoneyhewilltakehomeeachweekwillbelargersincehisemployerwon’tbedeductinganytaxesfromit.Hisemployerwantstohirehimforthe10weeksofhissummerbreakandexpectstopayhim$300perweek.Whichstatementbelowismostlikelytobetrue?

a.Hunterwillnotneedtopaytaxesontheincomefromhissummerjobbecausethetotalamounthewillearnisundertheamountrequiredforfederaltaxdeductions.

b.ItisillegalforHuntertoreceivepaymentforhisworkincash.Hecouldbefinedfordoingso.

c.Hunterwillneedtopayhisfederalandstatetaxesonhisownsincehisemployerisnot

payingtheserequiredtaxesforhim.

d.Hunter’semployerisdoinghimafavorbyofferingtopayhimincash.Hunterwillpotentiallyearnmorebythismethodofpayment.

38.Theregularschedule thatemployerspaytheir employeesiscalled the.

a.worker’scompensation

b.payperiod

c.employeebenefits

d.employercontributions

39.AllylearnedinherPersonalFinanceclassthatsomepaycheckdeductionsarerequiredandothersareoptional.Sheischeckingoverherpaystubandseesseveraldeductions.WhichofthefollowingwouldbeTRUE?

a.FederalIncomeTax,StateIncomeTax,SocialSecurityandMedicaredeductionsareall

requireddeductions.

b.FederalIncomeTax,StateIncomeTax,WorkersCompensations,andLifeInsuranceareallrequireddeductions.

c.SocialSecurity,Medicare,LifeInsurance,andHealthInsuranceareallrequireddeductions.

d.SocialSecurity,Medicare,FederalIncomeTax,andWorkersCompensationareallrequired

deductions.

Bobisworkingforabank.Heearns$8.00anhour,works40hoursaweek,andgetspaidevery2weeks.Everypayperiodhepays$63.08intofederalwithholdingstax,$33.21intostatewithholdingstax,and

$42.05intoFICA(SocialSecurityTax).

40.WhatisBob’sgrosspayonhispaycheck?

a. / $501.66
b. / $320.00
c. / $576.92
d. / $640.00

41.WhatisBob’snetpayonhispaycheck?

a. / $501.66
b. / $363.32
c. / $576.92
d. / $640.00