Taxation and Compliance Quiz
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Questions and Answers

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

  • To collectively fund government spending and public expenditures (correct)
  • To encourage savings and investment
  • To ensure fair distribution of wealth among citizens
  • To regulate and reduce negative externalities
  • When did the first known taxation take place?

  • Around 3000–2800 BC in Ancient Egypt (correct)
  • Around 500–300 BC in Ancient Greece
  • Around 500–300 AD in Roman Empire
  • Around 1000–800 BC in Mesopotamia
  • What types of taxes do most countries charge according to the text?

  • Tax on imports and exports
  • Tax on capital gains and dividends
  • Tax on property and sales
  • Tax on individual income and corporate income (correct)
  • What does tax compliance refer to?

    <p>Policy actions and individual behavior aimed at ensuring correct tax payments</p> Signup and view all the answers

    What is the economic effect of taxation in terms of the circular flow of income?

    <p>Transfers wealth from households or businesses to the government</p> Signup and view all the answers

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