Multiple Choice
In a market economy, who makes the decisions that guide most economic activity?
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0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
The government receives money through taxes. Which of the following is NOT an example of a federal tax?
A
Corporate tax
B
Income tax
C
Sales tax
D
Excise tax
Verified step by step guidance1
Step 1: Understand the types of taxes collected at different government levels. Federal taxes are imposed by the national government, while state and local governments impose their own taxes.
Step 2: Identify common federal taxes. Examples include corporate tax, income tax, and excise tax, which are collected by the federal government.
Step 3: Recognize that sales tax is typically imposed by state and local governments, not the federal government.
Step 4: Compare each tax option to determine which one is not a federal tax. Since sales tax is collected at the state or local level, it is not a federal tax.
Step 5: Conclude that among the options given, sales tax is the correct answer as it is NOT an example of a federal tax.
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