Earn income and taxes unit test

Aria sold an asset for more than she originally paid for it. What is the profit gained from this transaction called?

• Dividend

• Capital gain

• Gross pay

• Net pay

Priya and Samuel are discussing their investments. What is the portion of a company's profits distributed directly to shareholders, often issued on a quarterly basis?

• Gross pay

• Interest

• Dividend

• Opportunity cost

Evelyn and Isla are discussing the labor market. What term describes a labor market based on flexible, temporary, independent contractors and freelancers most often connected to customers through an online platform?

• Human capital

• Gig economy

• Regressive tax

• Progressive tax

Daniel received his paycheck and wants to know the total amount of earnings before taxes and other deductions. What is this amount called?

• Net pay

• Gross pay

• Capital gain

• Dividend

Ava has been working hard to improve her skills and abilities. What term refers to the economic value of an individual's skills, abilities, health, and motivation?

• Human capital

• Opportunity cost

• Interest

• Gig economy

Scarlett borrowed some money from the bank. What is the monetary charge for borrowing money, which is generally expressed as a percentage?

• Dividend

• Interest

• Gross pay

• Net pay

Ava received her paycheck and wants to know what the total amount of earnings after taxes and other deductions is called. What is it?

• Gross pay

• Capital gain

• Net pay

• Dividend

Kai is deciding between going to college or starting a job immediately after high school. What is the value given up or potential benefits that Kai misses after choosing one alternative over another?

• Opportunity cost

• Human capital

• Interest

• Progressive tax

Anika and Aiden are discussing different types of taxes. Anika asks, 'What type of tax increases to higher rates as taxable income increases?'

• Regressive tax

• Dividend

• Progressive tax

• Capital gain

James and Hannah are discussing different types of taxes. What type of tax is applied uniformly, assessed regardless of income, resulting in a larger burden on low-income earners?

• Progressive tax

• Regressive tax

• Gross pay

• Net pay