Sales Tax, Tips and Markup Test Quiz!

1) If an item is marked up, the price goes up?

True

False

When an item is marked up, it means that the price of the item has been increased. This increase in price is typically done by a retailer or seller in order to make a profit. Therefore, if an item is marked up, it is true that the price of the item goes up.

Explanation

When an item is marked up, it means that the price of the item has been increased. This increase in price is typically done by a retailer or seller in order to make a profit. Therefore, if an item is marked up, it is true that the price of the item goes up.

2) A tip goes to who?

The restaurant you are eating at

The government

The waiter or waitress

A tip goes to the waiter or waitress because they provide service to the customers in a restaurant. Tipping is a common practice in many countries where customers show appreciation for the service received by leaving a gratuity for the server. The tip is a way to acknowledge their hard work, attentiveness, and overall dining experience. It helps supplement their income as their wages may be lower due to the expectation of receiving tips.

Explanation

A tip goes to the waiter or waitress because they provide service to the customers in a restaurant. Tipping is a common practice in many countries where customers show appreciation for the service received by leaving a gratuity for the server. The tip is a way to acknowledge their hard work, attentiveness, and overall dining experience. It helps supplement their income as their wages may be lower due to the expectation of receiving tips.

3) Sales tax makes the cost of the item go ___________________.

Up

Down

Stay the same

Sales tax is an additional amount of money that is added to the cost of an item at the time of purchase. This means that the cost of the item increases or goes up when sales tax is applied. Therefore, the correct answer is "up".

Explanation

Sales tax is an additional amount of money that is added to the cost of an item at the time of purchase. This means that the cost of the item increases or goes up when sales tax is applied. Therefore, the correct answer is "up".

4) Discounts make the total cost go _____

Discounts make the total cost go down, lower, or drop because they reduce the price of the item or service being purchased. When a discount is applied, the amount saved is subtracted from the original price, resulting in a lower total cost. Therefore, the correct answer options accurately describe the effect of discounts on the total cost.

Explanation

Discounts make the total cost go down, lower, or drop because they reduce the price of the item or service being purchased. When a discount is applied, the amount saved is subtracted from the original price, resulting in a lower total cost. Therefore, the correct answer options accurately describe the effect of discounts on the total cost.

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