Question

1. which is an example of commodity money? a. a $20 bill b. a gold coin used in trade c. a debit card d. a treasury bond 10. earned income includes... a. inheritance b. lottery winnings c. salary d. interest on savings 11. which statement best describes fiat money? a. money that has value because of its metal content b. money that is backed by gold c. money that has value because people trust the government that issues it d. money that is only used internationally 12. which of the following is a form of windfall income? a. annual salary b. overtime bonus c. winning the lottery d. earning tips 13. which of the following directly affects your purchasing power? a. employee benefits b. inflation c. the state of the union d. the u.s. mint 14. which factor is least likely to influence income? a. skills and education b. job demand c. personal connections d. pastimes and hobbies 15. inflation decreases... a. the value of money b. wages c. taxes d. government revenue 16. which is an example of unearned income? a. hourly wages b. tips from waiting tables c. rental income d. overtime pay you are taking version a

Explanation:

• Question 9: Commodity money has intrinsic value. A gold coin has value due to the gold it contains.
• Question 10: Earned income is from work - salary is from employment.
• Question 11: Fiat money has value because people trust the issuing government.
• Question 12: Windfall income is unexpected, like lottery winnings.
• Question 13: Inflation directly reduces purchasing power.
• Question 14: Pastimes and hobbies are least related to income compared to skills, job demand, and personal connections.
• Question 15: Inflation decreases the value of money as more is needed to buy the same goods.
• Question 16: Unearned income is not from work. Rental income is passive and unearned.

Answer:

• 9. B. A gold coin used in trade
• 10. C. Salary
• 11. C. Money that has value because people trust the government that issues it
• 12. C. Winning the lottery
• 13. B. Inflation
• 14. D. Pastimes and hobbies
• 15. A. The value of money
• 16. C. Rental income