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State Whether the Following Statement is True Or False. Indirect Taxes Are Paid Directly by People to the Government. - Economics

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Question

State whether the following statement is true or false. 

Indirect taxes are paid directly by people to the government. 

Options

  • True

  • False

MCQ
True or False

Solution

Indirect taxes are paid directly by people to the government. - False

Explanation: The above statement is incorrect. Indirect taxes are not paid directly the by people to the government. In fact, indirect taxes are paid indirectly by the people to the government. Example, sales tax, VAT

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Taxable Income
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Chapter 14: Public Economics - Exercise 1 [Page 129]

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Micheal Vaz Economics [English] 12 Standard HSC
Chapter 14 Public Economics
Exercise 1 | Q 3.3 | Page 129
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