Unit 5 Pre-Test

What form of investment income is the result of a company distributing some/all of its profits to shareholders?

• Capital Gain

• Dividend

• Interest

• Premium

What are the types of taxes a person might pay?

Check all that apply.

• Sales tax

• Natural tax

• Income tax

• Property tax

• Birth tax

Which of these is a progressive tax?

• airport tax

• income tax

• property tax

• sales tax

What types of taxes contribute to Federal tax revenue? ( hint: choose 4 correct answers :)

• Corporate Income Tax

• Income Tax

• Estate Tax

• Excise Tax

a tax in which the tax rate increases as the taxable amount increases

• progressive
• regressive
• flat
• proportional

A _________ tax, also referred to as a flat tax, impacts low-, middle- and high-income earners relatively equally. 

• regressive
• proportional
• income

Under a ________ tax system, individuals and entities with low incomes pay a higher amount of that income in taxes compared to high-income earners. 

• Regressive
• Progressive
• Proportional
• Flat

Proportional taxes are taxes that stay the same regardless of a person's or business's income. For example, some sales taxes are considered proportional because a tax rate of 8% in a certain state would apply to all customers in that state and take the same fraction of their ________. 

• taxes
• income
• family
• friends

Jennifer earns $400 per week and pays 10% tax on groceries costing $200 would pay $20, or 5% of their income, in taxes. In the same scenario, Janice, earning $800 per week would only spend 2.5% in taxes. Who pays more?

• Jennifer
• Janice
• Mrs. Marsh
• Yoda

Federal Income tax is a _______tax

• proportional
• flat
• regressive
• progressive