A proportional tax is one where: MCQ with Answer and Explanation

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A proportional tax is one where:

A. the tax rate rises with income

B. the average tax rate is constant across income levels

C. only high incomes are taxed

D. the tax rate falls with income

Answer: Option B

Solution (By JKSSB Mock Tests)

A proportional tax applies the same tax rate to all income levels.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

In India, the repo rate is decided by:

A. RBI Governor

B. NITI Aayog

C. Finance Minister

D. Monetary Policy Committee

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Correct Answer: Option D

Explanation:
The Monetary Policy Committee of the RBI decides the policy repo rate.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Multilateral Investment Guarantee Agency' provides:

A. currency exchange

B. export subsidies

C. political risk insurance and credit enhancement for foreign investment

D. trade finance

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Correct Answer: Option C

Explanation:
MIGA provides political risk insurance to promote foreign direct investment.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is NOT a component of the Union Budget of India?

A. Capital Budget

B. Revenue Budget

C. Monetary Policy Statement

D. Finance Bill

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Correct Answer: Option C

Explanation:
The Monetary Policy Statement is issued by the RBI. The Union Budget consists of the Revenue Budget, Capital Budget and related documents including the Finance Bill.

This question belongs to: Economy GK Economy Set 1

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