Taxation

What is the primary characteristic of taxes?

• a) Voluntary payments

• b) Compulsory payments

• c) Paid in exchange for public services

• d) Paid to private organizations

What is the main purpose of taxation in modern economies?

• a) To punish non-compliance

• b) To raise revenue for the government

• c) To distribute wealth equally

• d) To discourage business activities

Which of the following taxes is most likely linked to a specific benefit?

• a) Income tax

• b) Payroll tax for social security programs

• c) Sales tax

• d) Wealth tax

Which of the following is an example of a tax that contributes to income redistribution?

• a) Sales tax

• b) Progressive income tax

• c) Tax on luxury goods

• d) Property tax

Which tax is levied on the use of public services or utilities?

• a) Compensatory tax

• b) Income tax

• c) Sales tax

• d) Corporate tax

A tax is a ________ payment to the Government, imposed without the expectation of a definite return or benefit to the taxpayer.

Taxes are primarily collected for the ________ of the community as a whole, rather than for specific individuals or groups.

According to Adam Smith, the subjects of every state should contribute towards the support of the government in proportion to their ________.

_______ taxes are levied on labor income to finance social security programs like retirement benefits and medical payments.

________ tax is levied to cover the expenses of public goods or utilities, such as roads or motor vehicle maintenance.