#1
Which tax is levied on the income of individuals and businesses?
Property Tax
Sales Tax
Income Tax
Excise Tax
#2
In the context of taxes, what does VAT stand for?
Value Added Tax
Variable Asset Tax
Voluntary Assessment Tax
Virtual Allocation Tax
#3
In the context of taxation, what does the acronym IRS stand for?
Internal Revenue Service
International Revenue System
Income Reporting System
Investment Regulation Service
#4
What is the term for the total income on which the income tax is calculated?
Gross Income
Net Income
Taxable Income
Adjusted Gross Income
#5
In a progressive tax system, what happens to the tax rate as income increases?
Remains constant
Decreases
Increases
Becomes negative
#6
What is the term for a tax that takes a higher percentage of income from high-income earners than from low-income earners?
Flat Tax
Proportional Tax
Regressive Tax
Progressive Tax
#7
What is the primary purpose of excise taxes?
To fund social programs
To regulate imports and exports
To discourage the consumption of specific goods
To support local businesses
#8
What is the term for a tax imposed on the import and export of goods?
Excise Tax
Tariff
Value Added Tax
Sales Tax
#9
What is the term for a tax levied on the value of real estate?
Income Tax
Sales Tax
Property Tax
Wealth Tax
#10
Which of the following is an example of an indirect tax?
Income Tax
Property Tax
Sales Tax
Corporate Tax
#11
What is the term for the income on which no income tax is imposed?
Taxable Income
Exempt Income
Deductible Income
Capital Income
#12
Which tax is imposed on the transfer of property upon death?
Estate Tax
Gift Tax
Property Tax
Inheritance Tax
#13
In a tax system, what is the difference between a credit and a deduction?
Credits reduce tax liability dollar-for-dollar, while deductions reduce taxable income.
Deductions reduce tax liability dollar-for-dollar, while credits reduce taxable income.
Both credits and deductions reduce tax liability dollar-for-dollar.
Neither credits nor deductions impact tax liability.
#14
Which country is known for having a zero-income tax policy?
United States
Switzerland
Singapore
Norway
#15
In a tax system, what is the difference between a regressive tax and a proportional tax?
Regressive tax takes a higher percentage of income from high-income earners.
Proportional tax takes a higher percentage of income from low-income earners.
Regressive tax takes a higher percentage of income from low-income earners.
Proportional tax takes a higher percentage of income from high-income earners.
#16
In a tax system, what is the purpose of a tax credit?
To reduce taxable income
To reduce tax liability dollar-for-dollar
To increase tax rates
To encourage tax evasion
#17
What is the term for a tax on the transfer of assets during one's lifetime?
Inheritance Tax
Gift Tax
Estate Tax
Wealth Tax