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 only by companies

B. it is paid by the government

C. it is paid by the seller only

D. the burden can be shifted to the final consumer

Answer: Option D

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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Practice More Economy Set 1 Questions

Question #1

The marginal propensity to consume is the ratio of:

A. total consumption to total income

B. change in consumption to change in income

C. change in saving to change in income

D. consumption to saving

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Correct Answer: Option B

Explanation:
MPC is the ratio of change in consumption to change in income.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Universal Immunization Programme' aims to protect children against:

A. only smallpox

B. vaccine-preventable diseases including polio, measles, tuberculosis and others

C. only polio

D. only COVID-19

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Correct Answer: Option B

Explanation:
Universal Immunization Programme protects children against multiple vaccine-preventable diseases.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of Indian public finance, 'Effective Revenue Deficit' is defined as:

A. Revenue deficit minus grants for creation of capital assets

B. Fiscal deficit minus interest payments

C. Primary deficit plus interest payments

D. Revenue deficit plus capital expenditure

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Correct Answer: Option A

Explanation:
Effective Revenue Deficit is Revenue Deficit minus grants given by the Centre to states and union territories for the creation of capital assets.

This question belongs to: Economy GK Economy Set 1

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