Minimum Alternate Tax is levied on companies that: MCQ with Answer and Explanation

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Minimum Alternate Tax is levied on companies that:

A. have no profit

B. are in special economic zones

C. pay very low tax due to exemptions and deductions

D. are foreign companies

Answer: Option C

Solution (By JKSSB Mock Tests)

MAT is imposed on companies whose normal tax liability is low because of exemptions and deductions.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

In the context of elasticity, if income elasticity of demand for a good is negative, the good is:

A. Normal good

B. Luxury good

C. Necessary good

D. Inferior good

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Correct Answer: Option D

Explanation:
A negative income elasticity of demand indicates that the good is inferior; demand for it falls as income rises.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'child sex ratio' in the Indian census is defined as the number of girls per how many boys in the age group 0-6?

A. 100

B. 100,000

C. 10,000

D. 1,000

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Correct Answer: Option D

Explanation:
Child sex ratio is expressed as girls per 1,000 boys in the 0-6 age group.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the 'Life-Cycle' and 'Permanent-Income' hypotheses taken together?

A. Both emphasise that consumption depends on long-run resource constraints rather than current income alone

B. Both assume infinite horizons only

C. Both claim that only current income matters

D. Both ignore the role of wealth

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Correct Answer: Option A

Explanation:
Both the life-cycle hypothesis and the permanent-income hypothesis assert that forward-looking consumers base consumption on expected lifetime or permanent resources rather than on current income alone.

This question belongs to: Economy GK Economy Set 1

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