When Using Credit to Make Purchases, Consumers Are

question 154

Multiple Choice

When using credit to make purchases, consumers are

• A) decreasing current buying power and increasing future buying power.
• B) increasing their present discretionary income to extend purchasing power.
• C) putting themselves at significant risk of financial disaster.
• D) forgoing the accumulation of wealth to increase current income.
• E) increasing current buying power at the expense of future buying power.

Understand how the employee’s gross and net pay are calculated.

Recognize the implications of errors in payroll calculation on taxes like FICA-OASDI, FUTA, and SUTA.

Identify the components and purposes of the Fair Labor Standards Act (FLSA).

Understand the differences between gross pay, net pay, and taxable earnings.

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Definitions:

Elite Families

Prominent, wealthy, and often aristocratic families that hold considerable power and influence within a society, politically, economically, or socially.

Colonial Government

The administrative and governing structure established in a colony by a foreign power, often characterized by exploitation and control.

Deists

People who believe in deism, the philosophical position that posits the existence of a God based on reason and natural law, without intervention in the universe or revelation to humanity.