Welcome to your Grade 12 Economics chapter 5
After carefully reading the following 30 questions, choose the correct answer.
1.
What is the definition of a tax?
2.
Which principle of taxation suggests that people should pay taxes according to the advantages they receive from government spending?
3.
In a progressive tax system, what happens as income increases?
4.
Which term refers to the final resting place of the tax burden?
5.
What is an example of an indirect tax in Ethiopia?
6.
The principle of "Vertical Equity" implies that:
7.
Which of the following is a characteristic of a "good" tax system?
8.
Direct taxes are those where:
9.
Which tax is imposed on goods produced within the country?
10.
A "proportional tax" is one where:
11.
What is the primary objective of taxation for most governments?
12.
Tax evasion refers to:
13.
Which Ethiopian tax is applied specifically to the "impact of employment"?
14.
The "Ability-to-pay" approach is based on the idea of:
15.
Which of the following is a problem associated with taxation in Ethiopia?
16.
Horizontal equity means:
17.
What is "tax impact"?
18.
Regressive taxation is a system where:
19.
The principle of "Certainty" in taxation means:
20.
Which of the following is considered a "sin tax" or discourages harmful consumption?
21.
"Tax Shifting" is the process of:
22.
In Ethiopia, "Turnover Tax" is generally applicable to:
23.
The "neutrality" of a tax system refers to:
24.
What is "Capital Gains Tax" in the Ethiopian context?
25.
Which principle suggests taxes should be collected at a time convenient for the taxpayer?
26.
Indirect taxes are mostly:
27.
"Withholding Tax" is collected:
28.
Which body in Ethiopia is primarily responsible for federal tax administration?
29.
The term "Tax Base" refers to:
30.
"Value Added Tax" (VAT) is a tax on:
