Chapter 2:Income, Benefits, & Taxes Test Review Quiz

A person who relies on you for more than half their support is called a:

• Dependent

• Employer

• Beneficiary

• Contractor

Which type of tax increases its rate as your income increases?

• Flat Tax

• Excise Tax

• Progressive Tax

• Indirect Tax

What is the main difference between an HSA (Health Savings Account) and an FSA (Flexible Spending Account)?

• HSA money is lost at year-end, FSA money carries over

• HSA money carries over year to year, FSA money is lost at year-end

• Both accounts lose money at year-end

• Both accounts carry over money year to year

Which tax is collected through purchases of goods and services, such as sales tax or excise tax?

• Direct Tax

• Indirect Tax

• Property Tax

• Social Security Tax

A wealth tax based on the assessed value of owned real estate.

• Direct Tax

• Indirect Tax

• Property Tax

• Sales tax

If someone works 45 hours in a week at $9.50 per hour, what is their total pay for the week?

• $427.50

• $380

• $451.25

• $500

Ally makes $15 hour and 40 hours a week. Her total deductions are $150. What is her monthly net pay?

• $2,400

• $2,250

• $600

• $400

Pria worked 50 hours last week at $11 per hour, what was her GROSS pay?

• $440

• $550

• $605

• $770

Which of the following types of income is considered taxable?

• Tips

• Social Security benefits

• Exemptions

• Indirect taxes

What type of tax is a sales tax classified as?

• Direct tax

• Indirect tax

• Earned income

• Exemption