Question : What is the difference between a direct tax and an indirect tax?
Option 1: A direct tax is a tax on goods and services, while an indirect tax is a tax on income
Option 2: A direct tax is a tax on income, while an indirect tax is a tax on goods and services
Option 3: A direct tax is a progressive tax, while an indirect tax is a regressive tax
Option 4: A direct tax is a regressive tax, while an indirect tax is a progressive tax
Correct Answer: A direct tax is a tax on income, while an indirect tax is a tax on goods and services
Solution : The correct answer is (b). A direct tax is a tax on income, while an indirect tax is a tax on goods and services.
A direct tax is a tax that is imposed directly on individuals or entities based on their income, profits, or wealth. Examples of direct taxes include income tax, corporate tax, and property tax. Direct taxes are typically calculated and paid directly by the taxpayer to the government.
On the other hand, an indirect tax is a tax imposed on goods and services at the point of consumption. It is not directly levied on individuals or entities based on their income or wealth. Instead, the tax is included in the price of the goods or services, and the burden of the tax is ultimately passed on to the consumer. Examples of indirect taxes include sales tax, value-added tax (VAT), excise tax, and customs duties.
Question : What is the difference between a progressive tax and a regressive tax?
Option 1: A progressive tax is higher for higher income earners, while a regressive tax is higher for lower income earners
Option 2: A progressive tax is higher for lower income earners, while a regressive tax is higher for higher income earners
Option 3: A progressive tax is a direct tax, while a regressive tax is an indirect tax
Option 4: A progressive tax is a tax on goods and services, while a regressive tax is a tax on income
Option 1: A progressive tax is a tax that increases as income increases, while a regressive tax is a tax that decreases as income increases
Option 2: A progressive tax is a tax that decreases as income increases, while a regressive tax is a tax that increases as income increases
Option 3: A progressive tax is a tax that is based on the value of a good or service, while a regressive tax is a tax that is based on the quantity of a good or service
Option 4: A progressive tax is a tax that is based on the quantity of a good or service, while a regressive tax is a tax that is based on the value of a good or service
Question : These taxes are generally progressive in nature.
Option 1: Tax revenue
Option 2: Non tax revenue
Option 3: Direct tax
Option 4: Indirect tax
Question : ___________ refers to the tax that are imposed on property and income of individual income and their burden can not be shifted.
Option 1: Direct tax
Option 2: Indirect tax
Option 3: Non tax revenue
Option 4: Tax revenue.
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
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