Overview Quiz

Questions

1. Why does the government need tax revenue?
2. How are taxes judged?
3. Name two tax philosophies.
4. True or False: Governments generally impose one type of taxation.
5. Name one type of tax mentioned in the reading.

Answers

1. The government pays for social, economic, and military objectives. Money is also required to run the government itself.
2. By their effectiveness, efficiency, and fairness.
3. The ability-to-pay principle and the benefit-received principle
4. False. Types of taxation vary.
5. Acceptable answers include the following: income, property, sales, excise, and trade.