Taxes, Insurance, and Basic Econ

You pay $100 per month in homeowner's insurance for a year (12 months). At the end of the year, someone breaks into your house and steals your $2000 TV. Your insurance covers this. Was the year of insurance worth it?

• Yes

• No

Sales tax in Kentucky is 6%. How much sales tax does this mean you pay on each dollar you spend?

• 6 cents

• 60 cents

• 600 cents

• 16 cents

Who takes income tax out of your paycheck?

• Federal government

• State government

• Local government

• All three levels of government

Businesses that don't make a profit still have to pay corporate taxes.

• True

• False

Social security is a tax that also comes out of your paycheck.

• True

• False

The more of a good there is, AKA a higher supply, the more people will pay for it.

• True

• False

The more demand consumers have for a product, the more of it they will purchase.

• True

• False

We have unlimited wants, but limited resources. This forces us as consumers to make choices. What is this called?

• opportunity cost

• scarcity

• economics

• demand

Who controls production and distribution in a command economy?

• The government

• consumers

• The media

• corporations

Who determines what is produced in a free market economy?

• consumers

• the government

• the president

• the media