Personal Financial Literacy

Which of the following is true?

• A tax is income received for being an entrepreneur.

• A tax is illegal.

• A tax is a required payment to the government.

• A tax is a payment for rent.

Jackson got a part-time job making hamburgers at a café. Last week he earned $100 in wages, but he received a paycheck for only $70. What is the reason the amount of his paycheck was less than the wages he earned?

• Jackson only worked part-time.

• The café lost money last week.

• The owner of the café decided not to pay Jackson the total amount he earned.

• Taxes were taken out of Jackson's paycheck.

Which of the following are required payments to the government?

• Taxes

• Savings

• Wages

• Income

Drew bought a computer for $480. Which tax would he have paid on the purchase?

• Payroll Tax

• Sales Tax

• Income Tax

• Property Tax

Miriam has an annual salary of 45,500. Which tax is the money she will pay to a government based on the amount of her yearly salary?

• Payroll Tax

• Sales Tax

• Income Tax

• Property Tax

Which tax is the money added to the cost of items or services?

• Payroll Tax

• Sales Tax

• Income Tax

• Property Tax