10
QuizMultiple Choice

Taxes

Question 10 • * HSA 26-27 Economics

Sales tax is calculated

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

Explanation

Sales tax is calculated by applying a tax rate—a percentage—to the taxable price of an item. The amount of tax therefore depends on the item’s price and the applicable rate, not simply on how many items are purchased or on a rate set by federal law.

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