A 'Tax Liability' Refers To

question 27

Multiple Choice

A 'tax liability' refers to:

• A)the fine incurred when a taxpayer is caught evading tax
• B)the amount of tax a taxpayer owes at the end of the financial year
• C)the taxpayer who is liable to pay the tax
• D)the fine incurred when a taxpayer is caught avoiding tax

---

Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, leading to high unemployment, deflation, and significant financial distress globally.

World War II

A global conflict that took place between 1939 and 1945, involving most of the world's nations.

Federal Government

The central government of a federation, possessing the power to manage matters impacting the whole nation.

Economic Role

The function that individuals, institutions, or items play in the economic system, influencing how resources are distributed and utilized.