Home > Economics 101 > Quizzes > Economics 101 Practice Test: The Tax System
Economics 101 Practice Test: The Tax System
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 15% • Most missed: “The corporate income tax”

Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents.

Related Test: Economics 101 Practice Test: Taxation

Economics 101 Practice Test: The Tax System
Time left 00:00
25 Questions

1. A person’s tax liability refers to
2. The benefits principle of taxation can be used to argue that the wealthy should pay higher taxes than the poor on the basis that
3. The largest source of revenue for the federal government is the
4. Which of the following is a tax system in which all taxpayers pay the same percentage of their income in taxes?
5. The deadweight loss associated with a tax on a product occurs because
6. Incentives to work and save are reduced when
7. The argument that might be used to require wealthier taxpayers to pay more in taxes for law enforcement because they own more and therefore have more to protect than poorer taxpayers would be based on
8. The extra taxes paid on an additional dollar of taxable income is called the
9. The most common explanation for Social Security payments accounting for a larger share of federal government expenditures is
10. Each of the following is a reason why tax loopholes exist EXCEPT
11. The government finances the budget deficit by
12. The U.S. income tax
13. The “flypaper theory” of taxation suggests that
14. Which component of federal government spending is the largest?
15. The essence of most proposals for a flat tax are captured in
16. Which of the following statements would NOT be used by an advocate of the flat tax?
17. The “marriage tax” refers to
18. If marginal tax rates increase, the
19. As tax laws become more complex,
20. State and local governments receive the largest portion of their tax revenues from
21. When government receipts exceed total government spending during a fiscal year the difference
22. The corporate income tax
23. If Shannon earns $60,000 a year and pays $12,000 in taxes while Sean earns $90,000 yearly and pays $18,000 in taxes, this income tax system would be
24. When tax laws give preferential treatment to specific types of behavior it is called
25. When the government places a tax on labor earnings, one result is that people

⚡ Recently practiced quizzes in this topic
Live quiz activity
Economics 101 Practice Test: Tradeoff between Inflation and Unemployment Economics Knowledge Test Questions Microeconomics Final Exam Basics of Economics Practice Test Economics 101 Practice Test: Open-Economy Macroeconomics Economics 101 Practice Test: Saving, Investment, and the Financial System Economics 101 Practice Test: Measuring a Nation's Income Economics 101 Practice Test: Basics of Macroeconomic Policy Economics 101 Practice Test: Theory of the Open Economy Economics 101 Practice Test: The Market Forces of Supply and Demand
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.