What Is A Tax? - Behind the News Quiz

What is the primary purpose of taxes?

• To collect money for the king's personal use

• To fund government projects and services

• To discourage people from working

• To punish citizens for earning money

What is the main type of tax that brings in the most money in Australia?

• Property tax

• Sales tax

• Income tax

• Luxury tax

How is income tax designed to be fair?

• Only businesses pay income tax

• Lower earners pay a higher percentage of their income

• Higher earners pay a higher percentage of their income

• Everyone pays the same amount regardless of income

What economic issue is mentioned as a reason for changing tax policy?

• Cost-of-living crisis

• Inflation

• Unemployment

• Trade deficit

What was the government's three-stage plan regarding income tax?

• To lower taxes for all income levels

• To lower taxes for low and middle incomes and later for higher incomes

• To increase taxes for everyone

• To eliminate income tax entirely

Why was the Prime Minister's change in tax policy controversial?

• It was implemented without any announcement

• It increased taxes for everyone

• It was a break of trust as he promised not to change it

• It only benefited the wealthy

What is the potential negative effect of taxing people too much?

• It can cause inflation

• It can lead to increased government spending

• It can reduce people's spending power and affect the economy

• It can increase unemployment

What is the potential negative effect of taxing too little?

• The government may not have enough funds for public services

• It can lead to a surplus in the budget

• It can increase the national debt

• It can cause deflation

Who is the character that explains the concept of taxes in the text?

• The king

• The Prime Minister

• A peasant

• A reporter

What was the reaction of the opposition to the Prime Minister's tax changes?

• They were indifferent to the changes

• They fully supported the changes

• They opposed the changes and planned to fight them

• They proposed an alternative tax plan