Taxes and Globalization

Front

What is the primary purpose of taxes in an economy?

Back

To fund public services and infrastructure

Front

How do progressive taxes impact income distribution in an economy?

Back

They reduce income inequality.

Front

Which of the following best describes tax equity? Options: Everyone pays the same amount of tax, Taxes are levied based on the ability to pay, Only businesses are taxed, Taxes are optional

Back

Taxes are levied based on the ability to pay

Front

What is the effect of high corporate taxes on business investment?

Back

It discourages investment

Front

Which principle of taxation is concerned with fairness and justice?

Back

Equity

Front

How can taxes influence consumer behavior?

Back

By discouraging the consumption of certain goods through higher taxes.

Front

What is a regressive tax?

Back

A tax that decreases as income increases.

Front

How might a government use taxes to stimulate economic growth during a recession?

Back

By decreasing taxes to increase disposable income

Front

Which of the following is an example of a tax that promotes equity? A flat tax rate for all income levels, A luxury tax on high-end goods, A tax on essential goods, A tax that only applies to low-income individuals

Back

A luxury tax on high-end goods

Front

What is the meaning of globalization?

Back

The worldwide coming together of countries and nations