Role of Taxation

Q. To control inflation, the government can increase tax rates as it will decrease the people's purchasing power.

1. False
2. True

Q.

What can the government do to reduce inequality?

Q.

During periods of inflation, rates should_______.

1. Fluctuate

2. Increase

3. Decreases

4. Remains Constant

Q. What can a government do to control inflation?

1. Increase tax rates
2. Outside the government's authority
3. Decrease tax rates
4. Not change tax rates

Q. How does the government regulate foreign trade?

1. Reduce tax on exports and increase tax on imports
2. Reduce tax on imports and increase tax on exports
3. Reduce tax on exports and imports
4. Increase tax on exports and imports

Q. The taxation system helps the government fight the biggest problem of inequalities in income.

1. regressive
2. progressive
3. proportional
4. indirect

Q. The tax rates are to control an excessive rise in the price of goods and services.

1. decreased
2. increased
3. kept unchanged
4. abolished

Q. What is the impact of the reduction of corporate tax rates on industries?

1. They might set up businesses in backward areas.
2. They might set up businesses in metropolitan cities.
3. They might give employment to the poor.
4. They might import high-tech machineries.

Q. According to new, Japan was one of the countries that had experienced prolonged deflation in recent decades.

How can this problem be solved through taxation?

1. Increase tax rates as it would reduce the purchasing power of people.
2. Decrease tax rates as it would increase the purchasing power of people.
3. Increase the tax rates first and then decrease the tax rates.
4. Decrease the tax rates first and then increase the tax rates.

Q. How does the government fight inequality in income?

1. Charge high taxes on the rich
2. Charge high taxes on the poor
3. Charge low taxes on the rich
4. Charge low taxes on the poor