Contemporary Economic Issues Quiz

What is the purpose of paying taxes?

• To fund various public expenditures

• To burden the poor

• To interfere with individual decision-making

• To favor a specific group or sector

What is the importance of having your own savings and investment?

• To generate income in the future

• To decrease investment

• To increase unemployment

• To decrease minimum wage

What is the objective of minimum wage?

• To favor a specific group or sector

• To be enough for the ordinary worker to afford things

• To bring unemployment

• To decrease investment

What is the definition of investment?

• A mandatory financial charge imposed upon a taxpayer by a governmental organization

• A product that people buy with the hope that they will be beneficial or will generate income in the future

• A property from which the owner receives payment from the occupant(s)

• A fixed regular payment made by an employer to an employee

What is the role of interest in investment?

• To increase capital stock

• To interfere with individual decision-making

• To burden the poor

• To decrease investment

What are the two types of investment?

• Progressive taxes and Proportional taxes

• Value-added tax and Excise taxes

• Individual income taxes and Corporate income taxes

• Fixed Income Investment and Variable Income Investment

What is the basic principle of taxation that refers to key concepts that guide governments in designing and implementing an equitable taxation regime?

• Equity

• Neutrality

• Predictability

• Earmarking

What is the definition of rent?

• A mandatory financial charge imposed upon a taxpayer by a governmental organization

• A fixed regular payment made by an employer to an employee

• The price paid for the use of land and other natural resource factors of production

• A product that people buy with the hope that they will be beneficial or will generate income in the future

What is the determinant of rent on land?

• The level of demand

• The supply of land

• The price of labor

• The level of economic activity

What is the definition of wages?

• A fixed regular payment made by an employer to an employee

• A property from which the owner receives payment from the occupant(s)

• A product that people buy with the hope that they will be beneficial or will generate income in the future

• A mandatory financial charge imposed upon a taxpayer by a governmental organization