MCQ On Taxation

5 Questions | Total Attempts: 2748

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Tax Quizzes & Trivia

Questions and Answers
  • 1. 
    The objective of taxation by the Government are - 
    • A. 

      Raising revenue for the state

    • B. 

      To maintain economic stability

    • C. 

      To remove disparities in the distribution of income

    • D. 

      All of the above

  • 2. 
    Pick out the factor which is not a feature of indirect taxes. 
    • A. 

      Convenience

    • B. 

      Tax evasion is difficult

    • C. 

      Fair to the poor

    • D. 

      Powerful tool of economic policy

  • 3. 
    Pick out the incorrect statement. 
    • A. 

      In the short period, shifting of a tax is easy.

    • B. 

      In the long period shifting of a tax is easy.

    • C. 

      When supply is elastic, shifting is easy.

    • D. 

      None of the above.

  • 4. 
    Which factor has no role in the shifting of a tax?  
    • A. 

      Change in prices

    • B. 

      Elasticity of demand and supply

    • C. 

      Nature of Demand

    • D. 

      Income of the consumer

  • 5. 
    Impact of a tax refers to -
    • A. 

      Final money burden

    • B. 

      Immediate money burden

    • C. 

      Indirect real burden

    • D. 

      None of the above

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