In the context of the Indian economy, the 'GST' is an example of: MCQ with Answer and Explanation

In the context of the Indian economy, the 'GST' is an example of:
A. An indirect tax with dual structure (Centre and States)
B. A wealth tax
C. A direct tax
D. A corporate tax only
Answer: Option A
Solution (By JKSSB Mock Tests)
Goods and Services Tax is a comprehensive indirect tax levied on the supply of goods and services, with a dual structure involving both the Centre and the States.

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Practice More Economy Set 1 Questions

Question #1
The 'replacement level fertility' is generally considered to be about how many children per woman?
A. 1.0
B. 4.0
C. 3.0
D. 2.1

Correct Answer: Option D


Explanation:
Replacement level fertility is about 2.1 children per woman.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of development economics, the 'Lewis Model' focuses on:
A. Only the role of foreign aid
B. Only technological progress in agriculture
C. The importance of balanced growth across all sectors equally
D. The role of surplus labour in agriculture and its transfer to industry

Correct Answer: Option D


Explanation:
The Lewis dual-economy model emphasises the existence of surplus labour in the traditional agricultural sector that can be transferred to the modern industrial sector at a constant real wage.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'dependency theory' of economic development argues that developing countries are:
A. dependent on developed countries and face unequal exchange
B. independent and self-sufficient
C. unaffected by global trade
D. growing faster than developed countries

Correct Answer: Option A


Explanation:
Dependency theory argues developing countries are economically dependent on developed countries.

This question belongs to: Economy GK Economy Set 1