jump to content of this page Bized logo linked to homepage
You are here: Home > Learning Materials > Economics > Question Bank > Government Policy: Indirect taxes

Learning Materials
Bookmark and Share

Advanced

Resources

Use the drop down boxes below to find resources related to this page.

Definitions:


Question Bank - Economics

Government Policy: Indirect taxes

Q1. Tax shifting

(Select one answer)

(a) * is the way in which a tax is structured.
(b) * is the ultimate distribution of a tax's burden.
(c) * occurs when taxes cause prices to increase, but wages to fall.
(d) * occurs when households can alter their behaviour and do something to avoid paying a tax.

Source: Pearson logo

Q2. VAT is a good example of which kind of tax

(Select one answer)

(a) * ad valorem
(b) * direct
(c) * excise duty
(d) * specific

Source: Pearson logo

Q3. Where a tax can be shifted the incidence depends on

(Select one answer)

(a) * elasticities of demand and supply
(b) * how many producers there are
(c) * who is legally obliged to pay the tax
(d) * whether there is perfect or imperfect information

Source: Pearson logo

Q4. Tax incidence is the

(Select one answer)

(a) * behaviour of shifting the tax to another party.
(b) * ultimate distribution of a tax's burden.
(c) * structure of the tax.
(d) * measure of the impact the tax has on employment and output.

Source: Pearson logo

Click to view your total score for all the above questions that you have attempted.

Contents | Previous | Next