C237 - WGU UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Tax Rate
Answer:
the amount of tax people are required to pay per unit of whatever is being taxed
Question:
2. Tax Formula
Answer:
tax base x tax rate
Question:
3. Flat Tax
Answer:
proportional tax on individual income after a specified threshold has been
reached
Question:
4. Graduated Tax
Answer:
the more money you make, the higher percentage of taxes you pay
Question:
5. Marginal Tax Rate
Answer:
the extra taxes paid on an additional dollar of income
Question:
6. Average Tax Rate
Answer:
total taxes paid divided by total income
Question:
7. Effective Tax Rate
Answer:
The actual rate you pay on your taxes, as a percentage of your overall income.
, Question:
8. Proportional Tax Rate
Answer:
A tax rate that remains the same, regardless of the size of the base (flat tax)
Question:
9. Progressive Tax Rate
Answer:
imposes an increasing marginal tax rate as the tax base increases, higher-income
people pay a higher percentage of their income in taxes than lower-income
people.
Question:
10. Regressive Tax Rate
Answer:
decreasing marginal tax rate as tax base increases, lower-income people pay a
higher percentage of their income in taxes than higher-income people.
Question:
11. Example of Proportional Tax Structure
Answer:
sales tax
Question:
12. Example of Progressive Tax Structure
Answer:
income tax
Question:
13. Example of Regressive Tax Structure
Answer:
social security
Question:
14. Graduated Tax Rate Structure
Answer:
Income is taxed in brackets, meaning different portions of your income are taxed
at different rates, a from of progressive tax.
CORRECT ANSWERS
Question:
1. Tax Rate
Answer:
the amount of tax people are required to pay per unit of whatever is being taxed
Question:
2. Tax Formula
Answer:
tax base x tax rate
Question:
3. Flat Tax
Answer:
proportional tax on individual income after a specified threshold has been
reached
Question:
4. Graduated Tax
Answer:
the more money you make, the higher percentage of taxes you pay
Question:
5. Marginal Tax Rate
Answer:
the extra taxes paid on an additional dollar of income
Question:
6. Average Tax Rate
Answer:
total taxes paid divided by total income
Question:
7. Effective Tax Rate
Answer:
The actual rate you pay on your taxes, as a percentage of your overall income.
, Question:
8. Proportional Tax Rate
Answer:
A tax rate that remains the same, regardless of the size of the base (flat tax)
Question:
9. Progressive Tax Rate
Answer:
imposes an increasing marginal tax rate as the tax base increases, higher-income
people pay a higher percentage of their income in taxes than lower-income
people.
Question:
10. Regressive Tax Rate
Answer:
decreasing marginal tax rate as tax base increases, lower-income people pay a
higher percentage of their income in taxes than higher-income people.
Question:
11. Example of Proportional Tax Structure
Answer:
sales tax
Question:
12. Example of Progressive Tax Structure
Answer:
income tax
Question:
13. Example of Regressive Tax Structure
Answer:
social security
Question:
14. Graduated Tax Rate Structure
Answer:
Income is taxed in brackets, meaning different portions of your income are taxed
at different rates, a from of progressive tax.
