quiz 1

Question 1

mandatory payment to a local state or national government

Answer 1

tax

Question 2

government income from taxes and nontax sources

Answer 2

revenue

Question 3

the rights of government to tax are set down in the _______ and in _____

Answer 3

US constitution and state constitution

Question 4

the ______ of taxation holds people who benefit directly from public goods should pay for them in proportion to the amounts of benefits received

Answer 4

benefits-received principle

Question 5

the _______ of taxation holds that people should be taxed on their ability to pay, no matter the level of benefits they receive

Answer 5

ability-to-pay principle

Question 6

tax systems attempt to make 3 criteria:

Answer 6

1. equity
2. simplicity
3. efficiency

Question 7

the ______ or fairness, or a tax is established by how uniformly the tax is applied

Answer 7

equity

Question 8

everyone who buys gas pays the same ___

Answer 8

tax

Question 9

the ____ of a tax is determined by how easy it is for the taxpayer to understand and how easy it is for the government to collect

Answer 9

simplicity

Question 10

the ______ best meets the criterion of efficiency

Answer 10

individual income tax