Taxes Multiple Choice Questions with Answers PDF – Test 8

MCQ 36: The condition when the burden of paying tax is shared among the collective participants in a market is known as:

1. tax on buyers
2. tax on sellers
3. tax incidence
4. tax administration

MCQ 37: The best opportunity to increase country's prosperity is:

1. quota
2. embargo
3. tariffs
4. trade and specialization

MCQ 38: When price of popcorn reduces whereas the price of movie tickets increases and vice versa, are to be known as:

1. inferior goods
2. complementary goods
3. substitutes
4. normal goods

MCQ 39: The amount of one good which must be given up in order to release resources necessary to produce an additional unit of another good is known as:

1. marginal rate of cost
2. average rate of cost
3. marginal rate of substitution
4. marginal rate of transformation

MCQ 40: One of the basic loss suffers by society because of levying taxes or subsidies is known as:

1. loss for buyers
2. loss for sellers
3. dead weight loss of taxation
4. shortage of taxation