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. A direct tax
B. An indirect tax with dual structure (Centre and States)
C. A corporate tax only
D. A wealth tax
Answer: Option B
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 'bank rate' in India is currently aligned with:
A. repo rate
B. reverse repo rate
C. CRR
D. MSF rate

Correct Answer: Option D


Explanation:
The bank rate is aligned with the MSF rate.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'long-run aggregate supply curve' is:
A. horizontal
B. downward sloping
C. vertical
D. U-shaped

Correct Answer: Option C


Explanation:
The long-run aggregate supply curve is vertical at the full employment level of output.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Ricardo equivalence' proposition states that:
A. government spending is always contractionary
B. deficit-financed spending does not affect aggregate demand if households anticipate future taxes
C. government borrowing is always expansionary
D. taxes have no effect

Correct Answer: Option B


Explanation:
Ricardian equivalence argues that public borrowing is offset by higher private saving in anticipation of future taxes.

This question belongs to: Economy GK Economy Set 1