Multiple Choice
Definition, Purpose, Theory and Basis
1. Which of the following statements is incorrect?
a. Taxes are the revenues raised in the exercise of
the police power of the State.
b. One of the special characteristics of tax is it is
unlimited in amount.
c. The three fundamental powers of the State are
inherent in the State and may be exercised without
the need of any constitutional grant.
d. All of the above.
2. The State having sovereignty can enforce
contributions (tax) upon its citizens even
without a specific provision in the Constitution
authorizing it.

1. Which of the following
will justify the foregoing statement?
a. It is so because the State has the supreme power
to command and enforce obedience to its will from
the people within its jurisdiction.
b. Any provision in the Constitution regarding taxation
does not create rights for the sovereignty to have the
power to tax but it merely constitutes limitations upon
the supremacy of tax power.
c. Both a and b
d. Neither a norb​