Question

1. which is an example of earned income subject to income tax? a. lottery winnings b. wages from a job c. rental income d. inheritance 34. annual salary means... a. pay based on the number of hours worked b. a fixed yearly amount of pay regardless of hours worked c. pay based on commission only d. unearned income 35. money deducted from a pay stub for a 401k is... a. at a variable rate b. always matched by the employer c. a mandatory deduction d. for a retirement plan 36. by federal law, employers are paid for overtime if they work more than... a. 40 days in a row b. on holidays c. 40 hours in a week d. a 12 - hour shift 37. the main disadvantage to the barter system is that... a. it requires the use of paper money. b. it depends on a \double coincidence of wants.\ c. it allows people to save wealth easily. d. it guarantees equal value in all exchanges. 38. social security and medicare taxes are taken out of paychecks under... a. gross pay b. fica deductions c. voluntary deductions only d. retirement plan contributions 39. dividends are defined as profits made from... a. investments b. savings accounts c. wages d. overtime 40. why is a dollar today worth more than a dollar tomorrow? a. inflation decreases future value b. money today can be invested and earn interest c. money tomorrow is backed by gold d. tomorrows dollar is tax - free you are taking version a

Explanation:

• 33: Earned income is income from work. Wages from a job are earned income and subject to income - tax. Lottery winnings are windfall gains, rental income is passive income, and inheritance is unearned.
• 34: Annual salary is a fixed yearly amount of pay regardless of the number of hours worked. Pay based on hours is hourly wage, pay based on commission is different from salary, and salary is earned income.
• 35: Money deducted for a 401K is for a retirement plan. It can be at a fixed or variable rate depending on the employee's choice, not always matched by the employer, and is not mandatory (but contributions are pre - tax).
• 36: By federal law, employers must pay overtime if employees work more than 40 hours in a week.
• 37: The main disadvantage of the barter system is the double - coincidence of wants. It doesn't require paper money, doesn't allow easy wealth - saving, and doesn't guarantee equal value in exchanges.
• 38: Social Security and Medicare taxes are taken out of paychecks under FICA (Federal Insurance Contributions Act) deductions.
• 39: Dividends are profits made from investments, usually in stocks.
• 40: A dollar today is worth more than a dollar tomorrow because money today can be invested and earn interest. Inflation is a factor but not the main reason in this context, modern money is not backed by gold, and there's no tax - free aspect related to this time - value concept.

Answer:

1. B. Wages from a job
2. B. A fixed yearly amount of pay regardless of hours worked
3. D. for a retirement plan
4. C. 40 hours in a week
5. B. It depends on a "double coincidence of wants."
6. B. FICA deductions
7. A. Investments
8. B. Money today can be invested and earn interest