The 'Goods and Services Tax' is an indirect tax because: MCQ with Answer and Explanation

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The 'Goods and Services Tax' is an indirect tax because:

A. it is paid by the seller only

B. the burden can be shifted to the final consumer

C. it is paid by the government

D. it is paid only by companies

Answer: Option B

Solution (By JKSSB Mock Tests)

GST is an indirect tax as the burden is ultimately borne by the final consumer.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on housekeeping services is:

A. 12%

B. 18%

C. 5%

D. 28%

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Correct Answer: Option B

Explanation:
Housekeeping services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

In monopolistic competition, the long-run equilibrium of a firm is characterised by:

A. Full capacity utilisation and supernormal profit

B. Full capacity utilisation and normal profit

C. Excess capacity and supernormal profit

D. Excess capacity and normal profit

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Correct Answer: Option D

Explanation:
Under monopolistic competition, firms produce less than the optimum output (excess capacity) and earn only normal profits in the long run due to free entry and exit.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Minimum Wages Act' applies to:

A. only informal sector

B. only factory workers

C. scheduled employments including agricultural and industrial workers

D. only government employees

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Correct Answer: Option C

Explanation:
Minimum Wages Act applies to scheduled employments including agriculture and industry.

This question belongs to: Economy GK Economy Set 1

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