7
QuizMultiple Choice

Planning for the Cost of College — Unit test

Question 7 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

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

Answer
f
flat tax
i
income tax
p
purchase tax
p
progressive tax

Explanation

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

AI-written and checked against the verified answer.

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