Quiz on Understanding Taxes

What is the primary purpose of taxes?

• To increase the wealth of individuals

• To fund government services and infrastructure

• To reduce the national debt

• To support private businesses

Which of the following is a type of federal tax?

• Property tax

• Sales tax

• Income tax

• Excise tax

What is the main purpose of state taxes?

• To fund international aid

• To support state-specific services

• To finance federal government projects

• To pay off state debts

Which of the following is typically funded by local taxes?

• National defense

• Public transportation

• Local schools

• Social Security

Tags

CCSS.RI.7.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.8.1

CCSS.RL.9-10.2

What is the difference between gross pay and net pay?

• Gross pay is after deductions; net pay is before deductions

• Gross pay includes bonuses; net pay does not

• Gross pay is before deductions; net pay is after deductions

• Gross pay is the same as net pay

Which of the following is a common deduction found on a paycheck?

• Lottery winnings

• Social Security tax

• Grocery expenses

• Rent payments

What type of tax is primarily used to fund Medicare?

• State tax

• Local tax

• Federal tax

• Property tax

Which of the following services is typically funded by federal taxes?

• City parks

• National defense

• Local libraries

• State highways

What is the role of taxes in society?

• To discourage spending

• To fund essential public services

• To increase inflation

• To support private sector growth

Which of the following is an example of a local tax?

• Federal income tax

• State sales tax

• City property tax

• National excise tax