Module 1: Basics of Taxation

Quiz 1

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Now that you've finished this module, take a few minutes to answer the following quiz. This exercise will help you review what you've learned.

Each of the following statements is either True or False.

When you are finished, you can check your answers by clicking on the "Answers" link at the end of the quiz.

You will probably get all the answers right! Remember, if you miss some, you can always go back and review the module again.

Quiz

1. The money collected by the federal government is spent on many things including:
   
   • payments to people;
     
   • transfers of money to other levels of government, which
     include the provinces and territories for their health care services;
     
   • other transfers;
     
   • defence;
     
   • transfers to Crown corporations;
     
   • operating and capital expenses; and
     
   • the public debt.
     
     

   True     False

2. A tax system has certain characteristics including:
   
   • structure, so people with similar financial circumstances should receive the same tax treatment, no matter how they earn their income;
     
   • arrangement whereby people at a higher economic level pay a larger share of taxes than those at a lower level;
     
   • neutrality so that the tax does not affect the government's economic decisions; and
     
   • administration of the tax has to be practical and efficient.
     
     

   True     False

3. Taxes are a new concept and have only been collected since 1950.
   
   True     False
   
   
4. Goods and services tax (GST) is applied to most goods and services sold in Canada.
   
   True     False
   
   
5. If you are 18 years old or over and working, you may have to make contributions to the Canada Pension Plan.
   
   True      False

Answers

Excellent! You have now finished the first part of the course. Please go to the second module.

Quiz 1

Page 8 of 8