Chapter 4 Quiz Fin Lit

Which of the following refers to financial obligations imposed on individuals and businesses by government entities?

• Taxes.

• Public service.

• Loan.

• Social welfare.

Most working adults will pay the following types of taxes:

• federal income taxes.

• payroll taxes.

• sales taxes.

• All of these answer choices are correct.

Which of the following refers to a tax that is paid whenever a transaction occurs?

• Federal income taxes.

• Payroll taxes.

• Sales taxes.

• Property taxes.

Which of the following refers to a tax that is paid throughout the year as income is earned?

• Payroll taxes.

• Sales taxes.

• Property taxes.

• All of these answer choices are correct.

Which of the following refers to a tax that imposes the same tax rate on all taxpayers subject to the tax?

• Regressive tax.

• Flat tax.

• Progressive tax.

• Federal income tax.

Which of the following refers to a tax that applies higher tax rates to higher-income households?

• Regressive tax.

• Flat tax.

• Progressive tax.

• Sales tax.

Which of the following refers to tax revenue exceeding annual expenditures?

• Federal surplus.

• Federal deficit.

• U.S. debt.

• Federal income tax.

What was the approximate value of the U.S. federal debt in 2018?

• $10 billion.

• $20 billion.

• $10 trillion.

• $20 trillion.

Which of the following refers to the government agency that is charged with collecting and enforcing tax laws?

• U.S. President’s Office.

• Internal Revenue Service (IRS).

• Congress.

• Federal Bureau of Investigation.

Mia buys a shirt for $35. The sales tax rate is 7%. How much is her total cost for the shirt?

• $35.

• $40.

• $2.45.

• $37.45.