Question 1

What is gross income?

Accepted Answer

The total earnings before any deductions

Answer

The amount saved in a bank

Answer

The total expenses paid

Answer

The earnings after taxes

Question 2

What does net income mean?

Accepted Answer

The amount of money you take home after deductions from your paycheck

Answer

The amount you owe in taxes

Answer

The amount spent on bills

Answer

The total salary before taxes

Question 3

If Jason earned $50 from his job and spent $30, what is his net gain?

Accepted Answer

$20

Answer

$30

Answer

$10

Answer

$50

Question 4

Maria sold her bike for $150 and bought it for $100. What was her net gain from the sale?

Accepted Answer

$50

Answer

$200

Answer

$150

Answer

$100

Question 5

What is the budget equation?

Accepted Answer

Income - Expenses = Savings

Answer

Savings + Expenses = Income

Answer

Income - Savings = Expenses

Answer

Income + Expenses = Savings

Question 6

How do you achieve a net gain after using the budget equation?

Accepted Answer

When you earn more money than you spend, you are saving money.

Answer

When you earn less money than you spend, you are going into debt.

Question 7

What is a net loss?

Accepted Answer

When you earn less money than you spend, you are going into debt.

Answer

When you earn more money than you spend, you are saving money.

Question 8

You are saving for a new bike that costs

\$200

. If you save

\$20

each week, how many weeks will it take to save enough money to buy the bike?

Accepted Answer

10 weeks

Answer

5 weeks

Answer

8 weeks

Answer

15 weeks

Question 9

Tom has

\$200

saved and he wants to buy video games that each cost

\$20

. How many video games can Tom buy with his savings if he doesn't want to spend more than his saved amount?

Accepted Answer

5 video games

Answer

6 video games

Answer

4 video games

Answer

3 video games

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