In the circular flow of income, leakages include: MCQ with Answer and Explanation

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In the circular flow of income, leakages include:

A. saving, taxes and imports

B. investment and exports

C. income and output

D. consumption and government spending

Answer: Option A

Solution (By JKSSB Mock Tests)

Leakages from the circular flow are saving, taxes and imports.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on long-term lease of industrial plots is:

A. 0%

B. 18%

C. 12%

D. 5%

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Correct Answer: Option B

Explanation:
Long-term lease of industrial plots attracts 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Trade Facilitation Agreement' of WTO entered into force in which year?

A. 2013

B. 2019

C. 2018

D. 2017

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Correct Answer: Option D

Explanation:
The Trade Facilitation Agreement entered into force in 2017.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the 'Carbon Border Adjustment Mechanism' proposals?

A. A complete ban on all imports

B. A levy on imports based on their embedded carbon content to prevent carbon leakage and protect domestic climate policies

C. Only export subsidies for green goods

D. Only domestic carbon taxes without border measures

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Correct Answer: Option B

Explanation:
A carbon border adjustment mechanism imposes a charge on imported goods equivalent to the domestic carbon price, thereby reducing the risk of carbon leakage and maintaining the competitiveness of domestic producers.

This question belongs to: Economy GK Economy Set 1

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