Question

1. which of the following is not one of the main purposes of taxation?

a) revenue
b) redistribution
c) retailing
d) repricing

1. public programs such as national defense, public schools, social security, and fire and police

protection are all paid for through _.
a) tax revenue
b) capital gains
c) itemized deductions
d) real estate taxes

1. a sales tax is sent to the government by _.

a) the city in which the purchase took place
b) the person who made the purchase
c) the merchant who sold the item(s)
d) the employer of the person who made the purchase

1. real estate taxes are calculated based on the _.

a) age of the property
b) size of the property
c) ownership of the property
d) estimated value of the property

1. in general, which type of tax is typically used to fund local schools?

a) sales tax
b) real estate tax
c) payroll tax
d) income tax

Explanation:

• Question 4: Taxation aims to raise revenue (A), redistribute wealth (B). Retailing (C) is a business activity, not a tax purpose. Repricing (D) is also not a main tax purpose.
• Question 5: Public programs like national defense are funded by tax revenue (A). Capital gains (B) are a type of income. Itemized deductions (C) reduce taxable income. Real - estate taxes (D) are a part of tax revenue but not the only source for all these programs.
• Question 6: A sales tax is sent to the government by the merchant (C) who sold the item as they collect it from the customer.
• Question 7: Real - estate taxes are calculated based on the estimated value of the property (D). Age (A), size (B), and ownership (C) are not the main bases for calculation.
• Question 8: Real - estate tax (B) is typically used to fund local schools. Sales tax (A) has other uses. Payroll tax (C) funds social security etc. Income tax (D) has broader uses.

Answer:

1. C. retalling; D. repricing
2. A. tax revenue
3. C. the merchant who sold the item(s)
4. D. estimated value of the property
5. B. real estate tax