Question

Which statement about sales taxes is true?
O
A. They reduce the profit that can be made from an investment.
O
B. They make the consumption of certain goods more expensive.
O
C. They increase the general price of services.
O
D. They make home ownership more expensive.

Answer 1

Answer:

C. They increase the general price of services.

Explanation:

A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax. Often laws provide for the exemption of certain goods or services from sales and use tax. A value-added tax (VAT) collected on goods and services is similar to a sales tax.

Answer 2

Answer:

The correct answer is option C. They increase the general price of services.

Explanation:

When the government puts a tax on a product or service that is for sale, it means that that tax is a sale tax.

The seller of the product will charge you that tax and will take care of sending it to the government.

This type of tax will be applied to the final consumer, that is, to the person who is buying the product or service.

Given this information we can say that the correct answer is option C.