Question : What is a progressive tax?

Option 1: A tax system where the rich pay a higher percentage of their income than the poor

Option 2: A tax system where the poor pay a higher percentage of their income than the rich

Option 3: A tax system where everyone pays the same percentage of their income

Option 4: A tax system where corporations pay taxes

Question : What is a regressive tax?

Option 1: A tax system where the poor pay a higher percentage of their income than the rich

Option 2: A tax system where everyone pays

Option 3: A tax which tends to decrease as income increases

Option 4: A tax system where the rich pay a higher percentage of their income than the poor

Question : In a proportional tax system, if the tax rate is 10%, which of the following scenarios is correct?

Option 1: Individuals with higher incomes pay a higher dollar amount in taxes.

Option 2: Individuals with lower incomes pay a higher percentage of their income in taxes.

Option 3: Individuals with higher incomes pay the same percentage of their income in taxes as those with lower incomes.

Option 4: Individuals with lower incomes have to bear less burden of tax.

Question : Which of the following sets of taxes belongs to the Central Government?

Option 1: Excise duty, sales tax and custom duty

Option 2: Income tax, custom duty and house tax

Option 3: Excise duty, custom duty and income tax

Option 4: Custom duty, entertainment tax, and income tax

Question : What is the difference between a direct tax and an indirect tax?

Option 1: Direct taxes are paid directly to the government, while indirect taxes are paid to a third party

Option 2: Direct taxes are paid to a third party, while indirect taxes are paid directly to the government

Option 3: Direct taxes are paid by corporations, while indirect taxes are paid by individuals

Option 4: Direct taxes are paid by individuals, while indirect taxes are paid by corporations