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practice testMultiple Choice

Practice Test

Question 1 • Economics

What is the definition of gross income?

Answer
A
amount of tax deducted from income
B
amount earned before deductions
C
amount received after deductions
D
amount of income saved per year

Explanation

Gross income is the total amount earned before taxes or other deductions are taken out. The amount left after deductions is net income, so choice B describes net income rather than gross income.

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