The 'Goods and Services Tax Compensation Cess' is levied to compensate states for: MCQ with Answer and Explanation

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The 'Goods and Services Tax Compensation Cess' is levied to compensate states for:

A. loss due to bank failures

B. loss of revenue due to GST implementation for a transition period

C. loss due to natural calamities

D. loss of import revenue

Answer: Option B

Solution (By JKSSB Mock Tests)

GST Compensation Cess compensates states for revenue loss due to GST implementation for five years.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'National Investment Fund' was created with the proceeds of:

A. taxes

B. disinvestment of central public sector enterprises

C. foreign aid

D. borrowings

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Correct Answer: Option B

Explanation:
National Investment Fund was created with disinvestment proceeds.

This question belongs to: Economy GK Economy Set 1

Question #2

Countervailing duties are imposed to:

A. restrict foreign investment

B. increase domestic consumption

C. offset subsidies given by foreign governments to their exporters

D. promote exports

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Correct Answer: Option C

Explanation:
Countervailing duties offset foreign export subsidies.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of a planned economy?

A. Centralised planning of resource allocation

B. Private ownership of all resources

C. Decentralised decision making

D. Price determination solely by market forces

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Correct Answer: Option A

Explanation:
In a planned (command) economy, the central authority plans and allocates resources according to predetermined objectives rather than market signals.

This question belongs to: Economy GK Economy Set 1

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