1. Which of the following developments can occur in an economy due to deficit financing

a) rise in inflation

b)Rise in government debt

c)Increase in money supply

d) all of the above

2. A tax on net income of companies is:

a) Personal income tax

b)Interest tax

c)Wealth tax

d)Corporation tax

3. A legal act taking advantage of special provisions(tax loopies) in the code so that one can reduce tax liability refers to ...

a) Tax evasion

b) Tax morality

c)Tax compliance

d) Tax avoidance

4. A .....,Principle stipulates that the tax burden of government expenditure be appointed to tax payers in accordance with the benefits each receives.

a) Partial equilibrium

b)Ability-to-Pay

c)Benefit

d)None of the Above

5. Which of the following developments can occur in an economy due to deficit financing

a) Rise in government debt

b) Rise in Inflation

c) Increase in money supply

d) all of the above

6. Which of the following is items is included in revenue receipts

a) Assets

b)Non-tax revenue

c) Recovery loans

d)Borrowing and other liabilities

7 When the tax rate increase as the tax base increases, the tax is..

a) proportional

b)Direct

c)Progressive

d)Regressive