Quiz 1

Question 1

A _______ is a mandatory payment to a local, state, or national government

Answer 1

tax

Question 2

The ________ allows the government to tax regularly

Answer 2

16th Amendment

Question 3

________ is government income from taxes and nontax sources

Answer 3

Revenue

Question 4

The ____________ of taxation holds people who benefit directly from public goods should pay for them in proportion to the amount 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

The rights of government to tax are set down in the ________ and in ________.

Answer 6

U.S. Constitution and state constitutions

Question 7

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

Answer 7

equity

Question 8

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

Answer 8

simplicity

Question 9

The individual income tax best meets the criterion of _______.

Answer 9

efficiency