Taxation Quiz

What is the main function of taxation?

• To fund government expenditures

• To control population growth

• To provide social welfare

• To promote economic growth

Which type of tax is imposed on the profit of a business?

• Property tax

• Capital gains tax

• Corporate tax

• Income tax

What does a capital gains tax apply to?

• Rental income

• Profit from asset sales

• Profit from business operations

• Salary income

Who pays a property tax?

• Tenants

• Real estate agents

• Property owners

• Local government employees

What is inheritance tax levied on?

• Income from investments

• Inherited estate

• Profit from business operations

• Salary income

What does a sales tax apply to?

• Goods and services sold by the government

• Exports only

• Goods and services sold by private businesses

• Imported goods only

What type of tax is a value-added tax (VAT)?

• Sales tax

• Income tax

• Property tax

• Corporate tax

What is the classification of a tax that taxes people with a higher income at a higher percentage rate?

• Regressive tax

• Progressive tax

• Proportional tax

• Flat tax

Which tax classification taxes people with a lower income at a higher rate relative to their income?

• Progressive tax

• Regressive tax

• Proportional tax

• Flat tax

What does a proportional tax do?

• Taxes only imported goods

• Taxes people with lower income at a higher rate

• Taxes people with higher income at a higher rate

• Taxes all income groups at the same percentage