The canon of equity in taxation means that: MCQ with Answer and Explanation

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The canon of equity in taxation means that:

A. tax should be economical to collect

B. persons with higher ability should pay more taxes

C. tax should be convenient to pay

D. tax rate should be uniform for all

Answer: Option B

Solution (By JKSSB Mock Tests)

The canon of equity requires taxation based on ability to pay, so the richer pay more.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Goods and Services Tax' on butter and ghee is:

A. 5%

B. 18%

C. 12%

D. 28%

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Correct Answer: Option C

Explanation:
Butter and ghee attract 12% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of monetary policy implementation, the 'Corridor System' refers to:

A. The absence of any standing facilities

B. Only the range of fiscal targets

C. The arrangement in which the policy rate is kept within a standing-facility corridor defined by the lending and deposit rates of the central bank

D. Only the range of inflation targets

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Correct Answer: Option C

Explanation:
In a corridor system the central bank’s overnight lending rate and deposit rate form a corridor within which the interbank rate fluctuates; open-market operations keep the market rate near the centre of the corridor.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Purchasing Managers' Index' for India is compiled by:

A. RBI

B. NSO

C. S&P Global and other agencies

D. SEBI

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Correct Answer: Option C

Explanation:
India's PMI is compiled by S&P Global and other agencies.

This question belongs to: Economy GK Economy Set 1

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