Taxation and Economic Impact Quiz

Which type of tax is added to most goods and services, potentially leading to higher prices?

• Property taxes

• Sales taxes

• Corporate taxes

• Income taxes

What is a potential unintended effect of high excise taxes?

• Increased economic productivity

• Reduced illegal market activity

• Driving consumers to illegal markets

• Enhanced job creation

Which type of tax is paid by businesses on profits and can deter job creation and economic growth?

• Income taxes

• Sales taxes

• Corporate taxes

• Property taxes

What can minimum prices, such as minimum wage, create in the economy?

• Increased employment

• Surpluses like unemployment

• Higher demand

• Reduced supply

Which tax is paid by property owners to fund municipal services?

• Sales taxes

• Income taxes

• Property taxes

• Excise taxes

What is the purpose of price floors in the economy?

• To reduce unemployment

• To create surpluses

• To increase demand

• To lower wages

What is a potential consequence of price controls on the economy?

• Increase in illegal market activity

• Reduction in economic productivity

• Creation of shortages or surpluses

• Enhancement of job creation

What can price floors, such as minimum wage laws, lead to?

• Increased housing availability

• Higher government spending

• Unemployment

• Lower wage rates

What is a con of corporate tax reduction?

• Increases public services

• Reduces government revenue

• Decreases inequality

• Attracts businesses

How do progressive taxation systems address inequalities?

• By reducing taxes for the wealthy

• By redistributing wealth through taxes

• By increasing corporate taxes

• By eliminating public services