Economics Topic 8

Income received by governments from taxes and other sources is called what?

• Revenue

• Profit

• Dividend

• Subsidy

Which Amendment allowed for the direct taxation of personal income?

• 16th Amendment

• 1st Amendment

• 10th Amendment

• 5th Amendment

What is the difference between a progressive tax and a proportional tax?

• A progressive tax increases as income increases, while a proportional tax remains the same percentage for all incomes.

• A progressive tax is a flat rate, while a proportional tax increases with income.

• A progressive tax is only for businesses, while a proportional tax is for individuals.

• A progressive tax is voluntary, while a proportional tax is mandatory.

Income, property, goods, or services that are subject to a tax are called what?

• Tax base

• Tax shelter

• Tax haven

• Tax refund

What are the 4 key characteristics of a tax?

• Certainty, equity, simplicity, efficiency

• Profit, loss, risk, return

• Growth, stability, liquidity, solvency

• Demand, supply, price, quantity

What is tax withholding?

• The amount of an employee’s pay withheld by the employer and sent directly to the government as partial payment of income tax.

• A tax refund given to employees.

• A tax on imported goods.

• A tax deduction for charitable donations.

A person’s income, minus exemptions and deductions is known as what?

• Taxable income

• Gross income

• Net profit

• Disposable income

What is a tax credit?

• An amount subtracted directly from the tax owed

• An amount added to taxable income

• A penalty for late tax payment

• A type of tax shelter

Which of the following is NOT a required federal tax on workers and businesses?

• Sales tax

• Income tax

• Social Security tax

• Medicare tax

Taxes on imported foreign goods are called what?

• Tariffs

• Excise taxes

• Property taxes

• Sales taxes