Tax buoyancy measures the responsiveness of: MCQ with Answer and Explanation

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Tax buoyancy measures the responsiveness of:

A. tax revenue to changes in GDP including discretionary changes

B. imports to exports

C. expenditure to revenue

D. tax revenue to changes in GDP without discretionary changes

Answer: Option A

Solution (By JKSSB Mock Tests)

Tax buoyancy includes both automatic and discretionary changes in tax revenue relative to GDP growth.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'working-age population' in India is usually defined as persons aged:

A. 10-60

B. 18-70

C. 15-59 or 15-64 depending on definition

D. 21-65

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Correct Answer: Option C

Explanation:
Working-age population is generally 15-59 or 15-64 depending on the survey definition.

This question belongs to: Economy GK Economy Set 1

Question #2

The priority sector lending target for domestic scheduled commercial banks is what percentage of Adjusted Net Bank Credit?

A. 50%

B. 40%

C. 30%

D. 25%

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Correct Answer: Option B

Explanation:
Domestic scheduled commercial banks are required to lend 40% of Adjusted Net Bank Credit to the priority sector.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'inflation targeting' in India uses which index as the nominal anchor?

A. CPI-Combined

B. GDP deflator

C. CPI-IW only

D. WPI

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Correct Answer: Option A

Explanation:
RBI's inflation targeting uses CPI-Combined as the nominal anchor.

This question belongs to: Economy GK Economy Set 1

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