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WorksheetsIncome and Taxes Review
Total questions: 20
Worksheet time: 15mins
Name
Class
Date
1.
Which statement best describes the relationship between a person's educational level and that person's potential earning power?
a)
Education has no effect on a person's potential earning power.
b)
A person with a professional degree is likely to earn at least four times as much per year as a person who did not complete high school.
c)
Attaining a higher educational level affects the earning potential only for people over 40 years old.
d)
Attaining a higher education level decreases potential earning power.
2.
The total amount of earnings before any deductions are taken out
a)
Gross Pay
b)
Net Pay
c)
After-tax Income
d)
Yucky Pay
3.
The amount of salary received after taxes and deductions
a)
Gross Pay
b)
Net Pay
c)
Total Earnings
d)
Bill
4.
With-holdings from paychecks that go to provide income support for people who are unemployed, disabled, or over age 65
a)
401k
b)
Social Security
c)
Medicare
d)
Medicaid
5.
Bruce makes $100,000 per year.
Steve makes $50,000 per year.
Tony makes $30,000 per year.
Bruce pays 30% in taxes, Steve pays 20%, and Tony pays 10%. This tax is
Steve makes $50,000 per year.
Tony makes $30,000 per year.
Bruce pays 30% in taxes, Steve pays 20%, and Tony pays 10%. This tax is
a)
Proportional
b)
Progressive
c)
Regressive
d)
I have no idea.
6.
What form is used by your employer to allow them to withhold taxes from your paycheck?
a)
I-9
b)
W-2
c)
W-4
d)
1040EZ
7.
When money is not used and goods and services are exchanges for other goods and services, this system is called? (hint think about World History)
a)
Credit
b)
Cash Exchange
c)
Bartering
d)
Debit
8.
The primary sources of income for young people between 18 and 30 who are not living on a pension (retirement) or social security are?
a)
Profits from businesses they own.
b)
Dividends and interest from investments
c)
Rents
d)
Wages, Salaries, and Tips
9.
Which of the following is an example of a need?
a)
A new car
b)
A vacation
c)
A form of shelter
d)
That new pair of Jordans
10.
Which of the following is an example of unearned income?
a)
Money earned from waiting tables.
b)
The tax return you receive from the government after filing you 1040EZ.
c)
Money from a salary job such as a professional athlete.
d)
Money earned on interest from a savings account.
11.
Which of the following should you consider when making a choice about a university or college to attend?
a)
Location of College
b)
Average debt of a student
c)
Cost of attending that college
d)
All of the above
12.
Rory is surprised to learn that there are many other types of income besides the wages he earns in this paycheck every month. Which of the following is an example of another type of earned income?
a)
Scholarships
b)
Money from selling his Playstation
c)
Tax Refund
d)
Interest earned from savings account
13.
A W-4 is given to you by an employer...
a)
True
b)
False
14.
This is a percentage of earnings that is taken out of ones paycheck.
a)
Liberty Tax
b)
Security Tax
c)
Income Tax
15.
Jessica is wanting to buy a $10.00 shirt. The sales tax is 5%. How much is the total shirt?
a)
$15.00
b)
11.00
c)
$12.00
d)
$10.50
16.
Which type of tax do you pay on your home or land?
a)
Location Tax
b)
Land Tax
c)
Property Tax
d)
House Tax
17.
Entrepreneurs who start a new business with the hope of making a profit are:
a)
Working fewer hours than people who have an employer.
b)
Earning a higher wages than most people.
c)
Taking advantage of government protection against financial loss.
d)
Accepting the risk of financial loss if unsuccessful
18.
Net pay is...
a)
Your take home pay after taxes
b)
Your total income before taxes.
19.
As Mariah was looking over her sales receipt for the shirt she bought at a retail store, she discovered that she was charged 6% more than the price tag showed for the item. What is this extra 6% charge most likely to be?
a)
An excise tax on the shirt she purchased
b)
Property tax on the shirt she purchased.
c)
Income tax on the shirt she purchased.
d)
Sales tax on the shirt she purchased.
20.
A tax on purchased goods and services
a)
community
b)
property tax
c)
earned income
d)
Sales tax
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