VAT is a good example of which kind of tax ?

Related Mcqs:

1. VAT is a good example of which kind of tax ?

   A. specific
   B. Direct
   C. Ad valorem
   D. Excise duty

2. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

3. Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

   A. Rs 50000
   B. 20%
   C. 25%
   D. Rs 10000

4. If VAT rates rise, then costs are likely to ___ and demand is likely to ____?

   A. rise; rise
   B. rise; fall
   C. fall; fall
   D. fall; rise

5. From the sale of capital assets tax is levied on profits. What this tax is called ?

   A. Profit tax
   B. Capital gains tax
   C. Excise duty
   D. Capital tax

6. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?

   A. B + C + E + F
   B. B
   C. B + C
   D. A

7. The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?

   A. none of these answers
   B. Reagan curve
   C. Keynesian curve
   D. Laffer curve
   E. Henry George curve.

8. The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?

   A. Proportional tax rate
   B. average tax rate
   C. marginal tax rate
   D. vertical tax rate
   E. horizontal tax rate

9. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?

   A. C + F
   B. A
   C. B
   D. C

10. When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ?

    A. caused a deadweight loss
    B. decreased equity
    C. generated no tax revenue
    D. increased efficiency