10
lesson pretestMultiple Choice

Pretest

Question 10 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

A sales tax is a type of

Answer
A
proportional tax.
B
progressive tax.
C
direct tax.
D
indirect tax.

Explanation

A sales tax is paid when a consumer buys a good or service, and the business collects it and sends it to the government. Because the tax is collected indirectly through the seller rather than paid directly to the government by the consumer, it is an indirect tax.

AI-written and checked against the verified answer.