8
practice examMultiple Choice

Practice Exam

Question 8 • Economics

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

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