Question

question 29 (multiple choice worth 4 points)
(06.05 lc)

which of the following is paid to the government based on the exchange of good and services?

social security tax
national tax
sales tax
income tax

Explanation:

Analyze the question prompt

The question asks which tax is paid to the government based on the exchange of goods and services.

Evaluate the options

• Social Security tax: A payroll tax levied on both employers and employees to fund the Social Security program, based on earned income.
• National tax: A general term for federal taxes, not a specific tax levied directly on the exchange of goods and services.
• Sales tax: A consumption tax imposed by the government on the sale of goods and services, collected by the retailer at the point of sale.
• Income tax: A tax levied directly on personal or corporate income.

Determine the correct choice

Sales tax is directly tied to the transaction (exchange) of goods and services.

Answer:

• (A) Social Security tax
• (B) National tax
• (C) Sales tax (Correct answer)
• (D) Income tax