ECS 1601
Study Unit 3 Quiz
Multiple Choice Questions (MCQ’s)
1. Which of the following statements are incorrect?
[1] An example of an Ad Valorem tax is VAT
[2] A tax is regressive if tax paid decreases as taxable income increases
[3] Direct taxes are paid when individuals purchase goods and services
[4] A specific tax is levied in each unit of the product
2. Inflationary financing is when government…
[1] issues government bonds in an attempt to finance its debts
[2] borrows from the central bank by using its overdraft facilities
[3] borrows money in the international capital market
[4] borrows money in the domestic capital market
3. Which of the following statements are incorrect?
[1] Government borrowing increases public debt
[2] Budget deficit is the difference between government spending and current revenue
[3] Government will implement expansionary fiscal policy when the economy is in a
recession
[4] The redistribution of income refers to a process whereby everyone’s incomes are
redistributed equally among the population
4. A tax is proportional if…
[1] The tax paid increases as the taxable income increases
[2] The tax paid decreases as the taxable income decreases
[3] The tax paid remains the same if the taxable income decreases
[4] The tax paid decreases as the taxable income increases
5. A specific excise tax is…
[1] A tax that is levied on specific goods only
[2] A fixed amount that is levied on each unit of the product
[3] A tax that is levied as a percentage of the value of the product
[4] A tax that is levied on specific individuals depending on their income
Quiz will be discussed on your e-tutor site from Monday 24 February Page 1
This study source was downloaded by 100000847097152 from CourseHero.com on 04-18-2023 12:44:12 GMT -05:00
https://www.coursehero.com/file/16706266/Quiz-Study-Unit-3/
Study Unit 3 Quiz
Multiple Choice Questions (MCQ’s)
1. Which of the following statements are incorrect?
[1] An example of an Ad Valorem tax is VAT
[2] A tax is regressive if tax paid decreases as taxable income increases
[3] Direct taxes are paid when individuals purchase goods and services
[4] A specific tax is levied in each unit of the product
2. Inflationary financing is when government…
[1] issues government bonds in an attempt to finance its debts
[2] borrows from the central bank by using its overdraft facilities
[3] borrows money in the international capital market
[4] borrows money in the domestic capital market
3. Which of the following statements are incorrect?
[1] Government borrowing increases public debt
[2] Budget deficit is the difference between government spending and current revenue
[3] Government will implement expansionary fiscal policy when the economy is in a
recession
[4] The redistribution of income refers to a process whereby everyone’s incomes are
redistributed equally among the population
4. A tax is proportional if…
[1] The tax paid increases as the taxable income increases
[2] The tax paid decreases as the taxable income decreases
[3] The tax paid remains the same if the taxable income decreases
[4] The tax paid decreases as the taxable income increases
5. A specific excise tax is…
[1] A tax that is levied on specific goods only
[2] A fixed amount that is levied on each unit of the product
[3] A tax that is levied as a percentage of the value of the product
[4] A tax that is levied on specific individuals depending on their income
Quiz will be discussed on your e-tutor site from Monday 24 February Page 1
This study source was downloaded by 100000847097152 from CourseHero.com on 04-18-2023 12:44:12 GMT -05:00
https://www.coursehero.com/file/16706266/Quiz-Study-Unit-3/
