4
lesson pretestMultiple Choice

Pretest

Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Sales tax is calculated

Answer
A
as a percentage based on federal law.
B
using a percentage of the price of an item.
C
based on the number of items purchased.
D
before a sale discount is applied.

Explanation

Sales tax is calculated by multiplying an item's taxable price by the applicable tax rate. For example, a 6% tax on a $10 item is $0.60. Therefore, the correct choice is “using a percentage of the price of an item.”

AI-written and checked against the verified answer.

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