Tax And Its Importance

Samacheer Book Back Questions And Answers For Economy Standard 7 Term 3 “Tax And Its Importance”

I. Choose the correct answer:
1. Taxes are ______ payment.
(a) Voluntary
(b) Compulsory
(c) a & b
(d) None of the above

2. Minimum possible amount should be spent in the collection of taxes is
(a) canon of equality
(b) canon of certainity
(c) canon of economy
(d) canon of convenience

3. This taxation is a very opposite of progressive taxation.
(a) degressive
(b) proportional
(c) regressive
(d) none

4. Income tax is a
(a) direct tax
(b) indirect tax
(c) a &b
(d) degressive tax

5. Which tax is raised on provision of service.
(a) wealth
(b) corporate
(c) wealth
(d) service

II. Fill in the blanks:
1. _______ is a term for when a taxing authority usually a government levies or imposes a tax.
2. _______ is the method, where the rate of tax is same regardless size of the income
3. _______ is paid to the Government by the recipient of gift depending on value of gift.
4. _______ tax burden cannot be shifted by tax payers.
5. Indirect tax is ______ elastic.

Answers:
1. Taxation
2. Proportional Taxation
3. Gift tax
4. Direct
5. More

III. Match the following:
1. Principle of taxation       A. Direct Tax
2. Estate tax                        B. Goods and Service Tax
3. Excise Tax                        C. Adam Smith
4. 01.07.2017                      D. Less elastic
5. Direct Tax                        E. Indirect Tax

Answers:
1. C
2. A
3. E
4. B
5. D

IV. Odd one out:
1. Which one of the following is not a indirect tax?
(a) Service tax
(b) Value Added Tax(VAT)
(c) Estate duty
(d) Excise duty

V. Correct one out:
1. Which one of the following tax is a direct tax?
(a) Service tax
(b) Wealth tax
(c) Sales tax
(d) Progressive tax