WorksheetsEconomic effects of taxation
Total questions: 10
Worksheet time: 5mins
A steeply _________ taxation system tends to reduce income inequality.
Regressive
Proportional
Progressive
Digressive
__________ taxation system increases inequality of income.
Regressive
Proportional
Progressive
Digressive
Taxes imposed on luxury goods will have a/an __________ effect on income distribution.
Neutral
Favourable
Unfavourable
Zero
Taxes imposed on necessary goods will have a/an ________ effect on income distribution.
Neutral
Favourable
Unfavourable
Zero
Highly steep income tax has _________ effect on ability and willingness to work, save and invest.
Neutral
Favorable
Zero
Unfavourable
When money burden of indirect taxes are passed on to the consumer it ________ the consumers real income.
Increases
Reduces
Neutralizes
May increase or reduce
The loss of consumer utility from substituting taxed goods by untaxed or low-taxed good refers to
Welfare cost
Consumer surplus
Deadweight loss
Opportunity cost
During depression taxes are _______.
Raised
Lowered
Kept unchanged
Either raised or kept unchanged
People's ability to work, save and invest will suffer when ________ goods are taxed.
Luxury
Comfort
Branded
Necessary
High tax on ______ will have favourable effect on ability to work.
Necessary goods
Giffen goods
Addictive goods
Food articles
