Finance Unbox-ED ($) - Grade 6-8 - Session 005 - Quiz 2

Select the statement that is true

• Tax is collected by the government to provide essential goods and services to people
• Tax is collected from both individuals and businesses
• Both of the above
• None of the above

Select the statement that is true

• Direct tax is tax levied on income earned
• Indirect tax is tax levied on the consumption of goods and services
• Both of the above
• None of the above

Select all the examples of direct tax

• Goods and Service Tax
• Income Tax
• Capital Gains Tax
• Custom Duties

Select all the examples of indirect tax

• Goods and Service Tax
• Income Tax
• Capital Gains Tax
• Custom Duties

Income tax is tax paid by individuals on salaries earned and tax paid by companies on profits made

• True
• False

Select the statement that is true

• Capital gains tax is tax paid on purchase of assets
• Capital gains tax is tax paid on profits made from sale of assets

Select the statement that is true

• Custom duties are paid on exports
• Custom duties are paid on imports

Alex purchased a bean bag from Richa and the price paid includes GST. Select the statement that is true

• Alex needs to pay GST to the government since he purchased the bean bag
• Richa needs to pay GST to the government on behalf of Alex since it is part of the selling price
• Neither Alex nor Richa need to pay GST to the government
• Both Alex and Richa need to pay GST to the government

In most countries the rich pay a higher tax rate and people below a certain income do not pay taxes

• True
• False

Select all the statements that are true

• Custom duties help increase imports
• Custom duties protect local companies against cheap imports
• Custom duties help tax the rich more
• Custom duties help tax the poor more