#1
Which of the following is an example of a direct tax?
Sales tax
Income tax
Value-added tax (VAT)
Excise duty
#2
What is the primary source of revenue for the government?
Corporate tax
Income tax
Property tax
Sales tax
#3
What is the purpose of a tax deduction?
To increase taxable income
To decrease taxable income
To eliminate taxes altogether
To calculate tax credits
#4
Which of the following is an example of an indirect tax?
Property tax
Sales tax
Corporate tax
Capital gains tax
#5
What does the term 'tax evasion' refer to?
Legally minimizing tax liability
Failing to pay taxes owed
Paying taxes voluntarily
Reporting income accurately
#6
Which of the following taxes is typically levied on goods and services at each stage of production or distribution?
Income tax
Property tax
Value-added tax (VAT)
Excise duty
#7
What does Laffer curve illustrate in the context of taxation?
Relationship between tax revenue and tax rate
Optimal level of government spending
Impact of inflation on tax collection
Distribution of tax burden among different income groups
#8
What is the tax rate applied to the next dollar of income called?
Average tax rate
Marginal tax rate
Effective tax rate
Flat tax rate
#9
In the context of tax administration, what does the acronym IRS stand for?
Internal Revenue Service
International Revenue Service
Income Regulation Service
Internal Reporting System
#10
What is the term for a tax that takes a larger percentage of income as income rises?
Flat tax
Progressive tax
Regressive tax
Proportional tax
#11
Which of the following is NOT a characteristic of a progressive tax system?
Tax rate increases with income
Tax rate decreases with income
Aim to reduce income inequality
Tax rate is fixed regardless of income
#12
Which of the following taxes is levied on the transfer of property or wealth upon the death of the owner?
Estate tax
Excise tax
Gift tax
Property tax
#13
What is the term for the process of reviewing a tax return for accuracy and completeness?
Tax preparation
Tax planning
Tax filing
Tax audit
#14
What is the term for the ability of a taxpayer to reduce their tax liability by taking advantage of deductions, credits, and exemptions?
Tax evasion
Tax sheltering
Tax avoidance
Tax deferral
#15
What is the term for a tax levied on goods and services when they are bought or sold?
Income tax
Property tax
Sales tax
Excise tax