Question

A key difference between tax revenue and non-tax revenue is that tax revenue is based on:

• A. Compulsory, non-reciprocal payments.
• B. Voluntary contributions.
• C. Payments for specific goods or services.
• D. Profits from government-owned enterprises.

Answer 1

Answer:

A. Compulsory, non-reciprocal payments.

• Tax revenue involves compulsory payments that do not directly entitle the payer to a specific, identifiable service.