12
practice testMultiple Choice

Practice Test

Question 12 • Personal Finance and Economics

Which describes a type of tax that people pay on money they earn?

Answer
A
flat tax
B
progressive tax
C
income tax
D
purchase tax

Explanation

An income tax is paid on money a person earns, such as wages or salary. A flat tax and a progressive tax describe ways taxes can be calculated, while a purchase tax is paid when buying goods or services.

AI-written and checked against the verified answer.

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