Section 2: Income, Wages, and Taxes

1: What is the difference between gross income and net income?

2: What is the definition of “earned income”?

3: What is a “tax”?

4: What is a “tax deduction”?

5: Which of the following is an example of a tax credit?

6: Which type of income is usually subject to taxation?

7: Which of the following might qualify for a tax exemption?

8: What is the purpose of a tax exemption?

9: How does a tax credit differ from a tax deduction?

10: What is the “gross pay”?