Human Capital
What is human capital?
a. Tools and machines
b. The money a business earns
c. The skills and knowledge people have
d. Buildings and land
c. The skills and knowledge people have
More education usually leads to:
a. Lower earnings
b. Higher earnings
c. Fewer skills
d. Higher taxes
b. Higher earnings
Earned income is:
a. Money from investments
b. Salary or wages
c. Gifts from relatives
d. Inheritance
b. Salary or wages
FICA stands for:
a. Federal Insurance Contributions Act
b. Federal Income and Credit Act
c. Finance and Investment Care Act
d. Federal Internal Cash Act
a. Federal Insurance Contributions Act
Employee benefits include:
a. Paid vacation and health insurance
b. Credit cards
c. Groceries
d. Loan payments
a. Paid vacation and health insurance
Investing in human capital means:
a. Buying property
b. Learning new skills
c. Spending money on vacations
d. Hiring employees
b. Learning new skills
A high school diploma is an example of:
a. A Loan
b. Formal education
c. Investment income
d. Net pay
b. Formal education
Unearned income includes:
a. Overtime pay
b. Interest from savings
c. Hourly wages
d. Tips
b. Interest from savings
FICA funds which programs?
a. Roads and schools
b. Medicare and Social Security
c. Scholarships and loans
d. Defense and security
b. Medicare and Social Security
Benefits usually add about what percent to total compensation?
a. 10%
b. 20%
c. 30%
d. 40%
c. 30%
An example of increasing human capital is:
a. Attending a workshop
b. Watching TV
c. Taking a nap
d. Playing games
a. Attending a workshop
On-the-job training helps employees:
a. Waste time
b. Learn new skills
c. Avoid taxes
d. Earn less money
b. Learn new skills
Gross pay is:
a. Pay after deductions
b. Total pay before deductions
c. Take-home pay
d. Annual bonus
b. Total pay before deductions
A voluntary deduction example is:
a. Health Insurance
b. Social Security
c. Medicare
d. Federal tax
a. Health Insurance
Which is a fringe benefit?
a. Salary
b. Health insurance
c. Rent payment
d. Loan interest
b. Health insurance
Human capital can be improved by:
a. Education and training
b. Reducing work hours
c. Buying stock
d. Owning equipment
a. Education and training
A college degree is an investment in:
a. Capital goods
b. Human capital
c. Physical resources
d. Government programs
b. Human capital
Net pay is:
a. Gross pay plus taxes
b. Gross pay minus deductions
c. Salary before work hours
d. Benefits added
b. Gross pay minus deductions
Mandatory payroll deductions include:
a. Lunch money
b. Retirement savings
c. Taxes and FICA
d. Donations
c. Taxes and FICA
An employer's 401(k) match is:
a. A tax
b. A benefit
c. A deduction
d. An expense
b. A benefit
Which skill is not human capital?
a. Education
b. Skills
c. Land
d. Experience
c. Land
The main benefit of increasing education is:
a. More free time
b. Higher productivity
c. Lower wages
d. Less experience
b. Higher productivity
Which is not a type of income?
a. Earned
b. Unearned
c. Passive
d. Bonus-only
c. Passive
Your W-2 form shows:
a. What to withhold
b. Annual earnings and taxes withheld
c. How much you want to save
d. Your daily schedule
b. Annual earnings and taxes withheld
A career cluster groups:
a. Similar career by skills
b. Family budgets
c. School clubs
d. Investment accounts
a. Similar career by skills
Developing a strong work ethnic improves:
a. Physical capital
b. Human capital
c. Natural resources
d. Taxes
b. Human capital
Continuing education classes can:
a. Decrease human capital
b. Increase skills and earnings
c. Lower job opportunities
d. Reduce experience
b. Increase skills and earnings
If you earn $12/hour and work 40 hours, your gross pay is:
a. $420
b. $440
c. $480
d. $500
c. $480
Before starting a new job, employee complete:
a. W-2
b. W-4
c. 1-9 only
d. 401 (k) form
b. W-4
Job incentives include:
a. Raises and bonuses
b. Pay cuts
c. Fines
d. Deductions
a. Raises and bonuses
An investment in human captial can lead to:
a. Higher earnings
b. Lower skills
c. Less productivity
d. More unemployment
a. Higher earnings
Certifications and licenses:
a. Decrease employability
b. Increase job qualification
c. Have no impact
d. Replace training
b. Increase job qualification
The best reason to keep a pay stub is:
a. Proof of income
b. To compare movies
c. For shopping discounts
d. For retirement savings only
a. Proof of income
The W-4 form determines:
a. Education level
b. Federal tax withholding
c. Retirement plan
d. Pay schedule
b. Federal tax withholding
Good work habits improve:
a. Human capital and employability
b. Social Security
c. W-2 information
d. Net pay
a. Human capital and employability
Employers value human capital because:
a. It lowers wages
b. It increases productivity
c. It replaces benefits
d. It reduces taxes
b. It increases productivity
Internships help students by:
a. Reducing earnings
b. Building experience
c. Decreasing benefits
d. Limiting growth
b. Building experience
Overtime pay usually means:
a. Lower hourly rate
b. Time and a half
c. Free vacation
d. Pay cut
b. Time and a half
A pay stub shows:
a. Grades
b. Pay, deductions, and net pay
c. Resume details
d. W-4 information
b. Pay, deductions, and net pay
Poor attendance can lead to:
a. Promotions
b. Job loss
c. Higher pay
d. Bonuses
b. Job loss
Which action increases your human capital the least?
a. Getting certified
b. Learning new technology
c. Ignoring feedback
d. Taking college courses
c. Ignoring feedback
A master's degree generally leads to:
a. More debt, no benefits
b. Higher potential earnings
c. Fewer opportunities
d. Lower income
b. Higher potential earnings
Salary empoyees:
a. Are paid hourly
b. Received a fixed annual pay
c. Don't pay taxes
d. Work part-time only
b. Received a fixed annual pay
Net pay means:
a. Take-home pay
b. Total pay before deductions
c. Extra pay
d. Bonus pay
a. Take-home pay
The main purpose of a resume is:
a. To apply for loans
b. To showcase skills and experience
c. To pay taxes
d. To track expenses
b. To showcase skills and experience
Which factor best describes human capital?
a. Knowledge and skills
b. Goverment spending
c. Equipment
d, Inventory
a. Knowledge and skills
a. Dropouts
b. College graduates
c. Part-time workers
d. Teenagers
b. College graduates
The more human capital you have:
a. The higher your earnings potential
b. The lower your benefits
c. The more taxes you pay
d. The fewer opportunities you get
a. The higher your earnings potential
Which tax supports older Americans health care?
a. FICA
b. State income
c. Medicare
d. Sales Tax
c. Medicare
Lifelong learning helps workers:
a. Stay competitive
b. Avoid technology
c. Lower productivity
d. Earn less
a. Stay competitive