Economic Terms Quiz

Fixed amount that may be deducted from adjusted gross income.

• Standard deduction

• Itemized deduction

• Tax credit

• Exemption

Wage based on a rate per unit of work completed.

• Piece rate

• Hourly wage

• Salary

• Commission

Income paid as a percentage of sales made by a salesperson.

• Commission

• Salary

• Bonus

• Wage

Wages or salaries and benefits paid to employees.

• Compensation

• Revenue

• Assets

• Liabilities

Income received from employment.

• Salary

• Interest

• Dividend

• Rent

A federal expense item that can be adjusted according to needs and revenues is a(n) ____.

• direct tax

• indirect tax

• mandatory expenditure

• discretionary expenditure

A newly hired employee will be asked to complete a _____.

• Form W-4

• Form W-2

• Form 1040

• Form 1040-SR

The largest government entitlement program currently is _____.

• Social Security

• Medicare

• education

• deficit spending

_____ is calculated by subtracting tax adjustments from total income.

• taxable income

• gross income

• net income

• adjusted gross income

Examples of _____ include lottery winnings, interest on savings accounts, rent income, dividends, and capital gains.

• unearned income

• earned income

• passive income

• investment income