The 'Advance Pricing Agreement' is related to: MCQ with Answer and Explanation

The 'Advance Pricing Agreement' is related to:
A. transfer pricing
B. customs valuation
C. indirect taxes
D. income from salary
Answer: Option A
Solution (By JKSSB Mock Tests)
Advance Pricing Agreements relate to transfer pricing arrangements.

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Practice More Economy Set 1 Questions

Question #1
In the context of economic theory, the 'Invisible Hand' suggests that:
A. Government planning is necessary for efficiency
B. Collective ownership is optimal
C. Individuals pursuing self-interest can promote social welfare through market mechanism
D. Markets always fail

Correct Answer: Option C


Explanation:
Adam Smith's concept of the invisible hand argues that individuals seeking their own gain in competitive markets unintentionally promote the overall social good.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on cable TV services is:
A. 12%
B. 28%
C. 5%
D. 18%

Correct Answer: Option D


Explanation:
Cable TV services attract 18% GST.

This question belongs to: Economy GK Economy Set 1
Question #3
According to the law of diminishing marginal utility, as a consumer increases consumption of a commodity, the marginal utility derived from each additional unit:
A. eventually declines
B. increases continuously
C. first declines then increases
D. remains constant

Correct Answer: Option A


Explanation:
The law of diminishing marginal utility states that as more units are consumed, the additional satisfaction from each extra unit eventually decreases.

This question belongs to: Economy GK Economy Set 1