1.
1) It's been a long day, you're tired and you just can't imagine making a full meal, so you stop by the grocery store and pick up a cooked whole rotisserie chicken at the deli. Taxed or not taxed?
Correct Answer
A. Taxed at 7 percent
Explanation
The correct answer is "Taxed at 7 percent." In most places, prepared foods like rotisserie chicken are subject to sales tax. Therefore, when you purchase a cooked whole rotisserie chicken at the deli, you would typically be charged a sales tax of 7 percent on top of the purchase price.
2.
2) It's cold and flu season. Your local pharmacy is offering a free box of tissues if you use the store coupon found in its weekly flier. Taxed or not taxed?
Correct Answer
B. Not taxed
Explanation
The answer "Not taxed" is correct because tissues are considered a medical supply and are typically exempt from sales tax. Since it is cold and flu season, the pharmacy is likely offering the free tissues as a promotion to encourage customers to purchase other items from their store. As a result, the tissues would not be subject to sales tax.
3.
3) Junior is screaming for a candy bar at the grocery store and you finally give in. Taxed or not taxed?
Correct Answer
A. Taxed at 5 percent
Explanation
The correct answer is "Taxed at 5 percent." This means that when you buy a candy bar for Junior at the grocery store, you will have to pay an additional 5 percent of the price as tax. This implies that the candy bar is subject to sales tax, which is a common practice in many jurisdictions.
4.
4) You stop at the bakery and pick up a box of a dozen doughnuts for a meeting at work. Before you leave, the cinnamon-sugar smell entices you to buy just one for yourself to eat on the commute. Both taxed, neither taxed or just one taxed?
Correct Answer
C. The dozen doughnuts are not taxed; your singleton is taxed at 7 percent
Explanation
The correct answer is that the dozen doughnuts are not taxed; your singleton is taxed at 7 percent. This means that the box of a dozen doughnuts is not subject to tax, but the one doughnut that you bought for yourself is taxed at a rate of 7 percent.
5.
5) You grab a small bottle of milk to go with that doughnut. Taxed or not taxed?
Correct Answer
A. Taxed at 7 percent
Explanation
The small bottle of milk is taxed at 7 percent because it is considered a taxable item. In many jurisdictions, milk is not considered a basic necessity and therefore is subject to sales tax. The 7 percent tax rate is applied to the purchase price of the milk, resulting in an additional cost to the consumer.
6.
6) It's Super Bowl weekend and you're stocking up on goodies. You fill your grocery cart with giant bags of corn chips, potato chips, tortilla chips and every other kind of edible chip left on the shelf. Taxed or not taxed?
Correct Answer
B. Not taxed
Explanation
The given answer "Not taxed" is correct because in most places, groceries including chips are not subject to sales tax. Sales tax is typically applied to non-essential items or luxury goods, while groceries are considered essential for daily living. Therefore, when stocking up on chips for the Super Bowl weekend, you would not have to pay any sales tax on them.
7.
7) The local pizza joint has amazing salads, but never provides enough salad dressing. Luckily, it sells bottles of the stuff. Taxed or not taxed?
Correct Answer
B. Not taxed
Explanation
The given answer "Not taxed" suggests that the bottles of salad dressing sold by the local pizza joint are exempt from taxation. This could be because in some jurisdictions, certain food items or ingredients, like salad dressing, may be considered essential or basic necessities and therefore not subject to sales tax. Alternatively, it could be possible that the jurisdiction in question does not tax the sale of salad dressing specifically.
8.
8) Your local supermarket (correctly) doesn't charge tax on deli case items, including cold cuts and cheeses. You buy a deli meat-and-cheese platter for your best friend's baby shower. Taxed or not taxed?
Correct Answer
A. Taxed at 7 percent
Explanation
The deli meat-and-cheese platter is taxed at 7 percent. The question states that the local supermarket doesn't charge tax on deli case items, but it doesn't specify whether this exemption applies to deli platters as well. Since the platter is a combination of deli meats and cheeses, it may be considered a separate item and therefore subject to tax.