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

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A regressive tax is one where:

A. the tax burden falls more heavily on lower income groups

B. the tax rate is constant

C. there is no tax on income

D. the tax rate rises as income rises

Answer: Option A

Solution (By JKSSB Mock Tests)

A regressive tax takes a larger percentage of income from low-income earners.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Gross National Product' at factor cost equals GDP at factor cost plus:

A. indirect taxes

B. depreciation

C. net factor income from abroad

D. subsidies

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Correct Answer: Option C

Explanation:
GNP at factor cost = GDP at factor cost + net factor income from abroad.

This question belongs to: Economy GK Economy Set 1

Question #2

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The term 'Non-Performing Asset' (NPA) in banking refers to:

A. A loan on which interest or principal is overdue for a specified period

B. Government securities held by banks

C. An asset that generates income regularly

D. Cash reserves of the bank

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Correct Answer: Option A

Explanation:
An NPA is a loan or advance where interest or principal remains overdue for a period of more than 90 days (as per RBI norms for term loans).

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Asian Development Bank' is headquartered in:

A. Singapore

B. Beijing

C. Tokyo

D. Manila

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Correct Answer: Option D

Explanation:
The Asian Development Bank is headquartered in Manila, Philippines.

This question belongs to: Economy GK Economy Set 1

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