#1
What is the primary purpose of taxation?
To generate revenue for the government
ExplanationTaxation primarily aims to provide revenue for governmental functions.
#2
Which type of tax is levied on the income of individuals and businesses?
Income tax
ExplanationIncome tax is imposed on the earnings of individuals and businesses.
#3
What is the incidence of a tax?
The burden of the tax on taxpayers
ExplanationIncidence of tax refers to the burden it places on taxpayers.
#4
In the context of taxation, what does the term 'progressive tax' mean?
A tax that increases as income increases
ExplanationProgressive tax rises proportionately as income levels increase.
#5
What is the Laffer curve in relation to taxation?
A curve depicting the relationship between tax rates and tax revenue
ExplanationThe Laffer curve illustrates the correlation between tax rates and revenue.
#6
In taxation, what does the term 'tax base' refer to?
The economic value or property subject to taxation
ExplanationTax base denotes the economic value or property liable to taxation.