Question

multiple choice circle the letter next to the correct answer.

1. withholdings and deductions are...

a. examples of deficit spending c. categories of a good budget
b. expenses that are taken out of your d. money that the government gives back to
paycheck you

1. the tax on the purchase of goods or services is called __________.

a. consumption tax c. income tax
b. purchase tax d. goods and services tax

1. the money you earn hourly for your time and effort at work is called your __________.

a. wages c. minimum wage
b. salary d. income tax

1. what does the form w-4 estimate?

a. how much tax youll owe based on your c. how much money youll spend in that
personal situation. fiscal year.
b. how much income you should be making. d. how many tax returns you need to submit.

1. every american who earns an income must file a __________ each year.

a. tax deduction c. tax extension
b. paycheck d. federal tax return

1. when you make ____ money, you will pay ____ in taxes.

a. more; more c. less; more
b. more; less d. more; the same amount

1. if you work and earn money, you will have to pay taxes.

a. true b. false

1. when you buy clothes or check out at the grocery store, you will pay __________.

a. with your tax credit card c. excise tax
b. sales tax d. income tax

Explanation:

Question 1

Withholdings and deductions are amounts taken from a paycheck (e.g., taxes, insurance). Option A is about deficit spending (government), C is budget categories (not withholdings), D is tax refund. So B is correct.

Tax on goods/services purchase is sales tax, but here "Goods and services tax" (D) or "Consumption tax" (A)? Wait, "Goods and services tax" (GST) or "Sales tax" is similar, but option D is "Goods and services tax" which is a type of consumption tax. Wait, the question's options: A is Consumption tax, D is Goods and services tax. Wait, actually, the tax on purchase of goods/services is often called sales tax, but in options, D is "Goods and services tax" (GST) which is a specific type of consumption tax. Wait, maybe the intended answer is D? Wait, no, let's check: Consumption tax is a broad term, but "Goods and services tax" is a specific tax on goods and services. Wait, maybe the question is from a region where GST is used, but in US, it's sales tax. But the options: A is Consumption tax, D is Goods and services tax. Wait, maybe the answer is D? Wait, no, let's re-examine. The tax on purchase of goods or services: "Goods and services tax" (D) is a tax on goods and services, so D is correct. Wait, but "Consumption tax" (A) is also a tax on consumption (purchase). Hmm. Wait, maybe the intended answer is D. Let's confirm: "Goods and services tax" is a tax levied on the supply of goods and services, so D is correct.

Wages are earned hourly, salary is fixed (e.g., monthly/yearly), minimum wage is a rate, income tax is a tax. So A (Wages) is correct.

Answer:

B. Expenses that are taken out of your paycheck

Question 2