Government Revenue and Taxation Quiz
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Questions and Answers

What is the primary purpose of taxation according to the text?

  • To regulate economic growth
  • To control government expenditures
  • To restrain citizens' liberties
  • To promote general welfare and protection (correct)
  • Which theory states that tax laws are created to support the necessity of any state?

  • Benefits-Protection Theory
  • Lifeblood Theory
  • Necessity Theory (correct)
  • Police Power Theory
  • What does the Lifeblood Theory state about taxes?

  • They are used to promote general welfare
  • Without them, the government cannot operate or survive (correct)
  • They are unnecessary for government survival
  • They are essential for economic growth
  • Which power allows the State to restrain and regulate the use of liberty and property?

    <p>Police Power</p> Signup and view all the answers

    What is the purpose of Secondary (Regulatory Purpose) Taxation?

    <p>To reduce inequality</p> Signup and view all the answers

    What does the Benefits-Protection Theory suggest about citizens' payment of taxes?

    <p>It sustains government activities in exchange for benefits received</p> Signup and view all the answers

    What is the power of eminent domain?

    <p>The State's power to acquire private property for a public purpose upon payment of just compensation</p> Signup and view all the answers

    Which tax must be based on taxpayers' ability to pay according to Theoretical Justice?

    <p>Personal, Poll, or Capitation Tax</p> Signup and view all the answers

    What is the difference between direct and indirect tax?

    <p>Direct tax cannot be shifted to another person, while indirect tax can be shifted to another.</p> Signup and view all the answers

    What type of tax is imposed by the national government?

    <p>National Tax</p> Signup and view all the answers

    Which type of tax is levied without a specific or predetermined purpose?

    <p>Fiscal/General/Revenue Tax</p> Signup and view all the answers

    What does an ad valorem tax refer to?

    <p>A fixed proportion of the value of property being taxed</p> Signup and view all the answers

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