#1
Which of the following is a direct tax?
Income tax
ExplanationTax directly levied on individuals' income.
#2
What does the acronym 'GST' stand for in the context of taxation?
Goods and Services Tax
ExplanationTax on the consumption of goods and services.
#3
Which tax is applied to the profits made from the sale of an asset such as stocks or real estate?
Capital gains tax
ExplanationTax on the profit from the sale of assets.
#4
In the context of taxation, what does 'AMT' stand for?
Alternative Minimum Tax
ExplanationAdditional tax required if the regular income tax is too low.
#5
What is the primary objective of a 'windfall tax'?
To tax unexpected financial gains
ExplanationTax on large, unforeseen gains.
#6
What is the primary purpose of excise duty?
To raise revenue for the government
ExplanationIt's imposed on goods produced domestically or imported, typically to regulate and raise revenue.
#7
In tax terminology, what does 'VAT' stand for?
Value Added Tax
ExplanationTax levied on the value added to a product at each stage of production and distribution.
#8
Which tax is typically imposed on the transfer of property or assets upon the death of the owner?
Estate tax
ExplanationTax on the transfer of property upon death.
#9
In the context of income tax, what does 'AGI' stand for?
Adjusted Gross Income
ExplanationTotal income minus specific deductions.
#10
What is the purpose of a 'luxury tax'?
To generate revenue from the wealthy
ExplanationTax on luxury goods or services.
#11
In the United States, which government agency is responsible for collecting federal taxes?
Internal Revenue Service (IRS)
ExplanationFederal agency responsible for tax collection and enforcement.
#12
What is the purpose of a 'sin tax'?
To discourage unhealthy behaviors
ExplanationIt aims to decrease the consumption of goods considered harmful, like alcohol or tobacco.
#13
Which tax is levied on the wealth or assets of an individual?
Wealth tax
ExplanationTax assessed on the value of an individual's assets.
#14
Which tax is specifically aimed at controlling pollution and environmental degradation?
Carbon tax
ExplanationTax on the carbon content of fuels.
#15
What is the primary purpose of a 'payroll tax'?
To support unemployment insurance
ExplanationTax on wages paid by employers.
#16
What is the purpose of a 'tariff' in the context of international trade?
To impose taxes on imports and exports
ExplanationTax on imported and exported goods.
#17
Which tax is levied on the value of goods and services at each stage of production and distribution?
Value-added tax (VAT)
ExplanationTax on the value added at each stage of production and distribution.