MCQ for Objectives of Taxation
Below are ten multiple-choice questions and answers to the objectives of taxation. Feel free to
use them for your studies, as teachers or students of tax.
1. The primary objective of taxation is:
A. To pay taxes
B. Generate revenue for the government
C. Impoverish the poor
D. Acquire social amenities
2. The following are objectives of taxation except ______________
A. Revenue generation to the government
B. Protect life and properties
C. Compulsory payment by citizens
D. Use for creating public goods
3. When government officials use public funds negatively, it is referred to as:
A. Corruption
B. Surcharge
C. Obligations
D. Offense
4. The use of tax revenue to protect the lives and properties of the populace is referred to as:
A. Charity
B. Objective of tax
C. Delimitation of taxation
D. Microeconomics principles
5. Taxation can be used to control the economy.
A. Very possible
B. Not Possible
C. Very Likely
D. False
6. It has been noticed by the government that dangerous commodities are being imported into
the country. Several efforts have been made to successfully curb the situation. Which of the
following do you think the government did not use to prevent or reduce the importation of
dangerous commodities?
A. Place a ban on the commodity
B. Increase taxes on the commodity
C. Reduce taxes on the commodity
D. None of these
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7. ___________ and _________ are objectives of taxation.
A. productivity and GDP
B. tax assessment and collection
C. Government revenue and social goods
D. Social goods and amenities
8. When a country increases taxes on its citizens, it results to ___________
A. Increase in government revenue
B. Decrease in government revenue
C. Corruption of public officeholders
D. Economic growth
9. When the government reduces the tax paid by low-income earners, which objective of
taxation is fulfilled?
A. Generate revenue for the government
B. Reduce consumption of toxic commodities
C. Redistribute wealth
D. Encourage high-income earners to invest
10. The redistribution of wealth between the wealthy and the poor citizens is a/an _________ of
taxation.
A. Principle
B. Adams Smith Canon
C. Theory
D. Objectives
Solution to MCQ for objectives of taxation
1B
2C
3A
4B
5A
6C
7C
8A
9C
10 D
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