#1
Which of the following is a direct tax?
Sales tax
Property tax
Value-added tax
Excise tax
#2
What is the tax levied on the transfer of property after the owner's death called?
Estate tax
Income tax
Sales tax
Property tax
#3
Which of the following is an example of an indirect tax?
Corporate tax
Property tax
Excise tax
Capital gains tax
#4
What is the term for a tax system where all taxpayers pay the same percentage of their income as tax?
Progressive tax
Proportional tax
Regressive tax
Exponential tax
#5
Which of the following is an example of an ad valorem tax?
Excise tax on cigarettes
Sales tax on clothing
Flat income tax
Corporate tax on profits
#6
What is the impact of an increase in income tax rates on consumer spending?
It increases consumer spending
It decreases consumer spending
It has no impact on consumer spending
It depends on other economic factors
#7
Which of the following is a progressive tax system?
Flat tax
Sales tax
Income tax
Property tax
#8
What does Laffer Curve illustrate in taxation?
The relationship between tax revenue and government spending
The relationship between tax rates and tax evasion
The relationship between tax rates and tax revenue
The relationship between tax rates and inflation
#9
Which of the following is NOT a characteristic of a regressive tax?
Higher-income individuals pay a smaller percentage of their income in tax
It imposes a greater burden on low-income individuals
The tax rate decreases as the income increases
It is usually associated with luxury goods taxes
#10
What is the term for a tax system where the tax rate decreases as the taxpayer's income increases?
Progressive tax
Proportional tax
Regressive tax
Exponential tax
#11
What is the Laffer Curve used to illustrate?
The relationship between tax rates and tax revenue
The relationship between inflation and unemployment
The impact of government spending on the economy
The effects of interest rates on investment
#12
How does a decrease in corporate taxes affect investment?
It increases investment
It decreases investment
It has no impact on investment
It depends on other economic factors
#13
What is the 'deadweight loss' associated with taxation?
The loss of potential revenue due to tax evasion
The loss of consumer and producer surplus due to taxes
The loss of government expenditure on tax administration
The loss of international competitiveness due to high tax rates
#14
According to supply-side economics, reducing taxes can lead to:
Increase in government spending
Decrease in inflation
Increase in consumer savings
Increase in economic growth
#15
In economics, what does the term 'tax buoyancy' refer to?
The elasticity of tax revenue concerning changes in the tax base
The stability of tax rates over time
The efficiency of tax collection systems
The rate at which tax rates increase