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. the burden can be shifted to the final consumer

B. it is paid only by companies

C. it is paid by the government

D. it is paid by the seller only

Answer: Option A

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 'Special Economic Zones Act' was enacted in India in which year?

A. 2010

B. 2006

C. 2000

D. 2005

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Correct Answer: Option D

Explanation:
The SEZ Act was enacted in 2005.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'GST Council' is chaired by the Union Finance Minister and includes which other representatives?

A. SEBI chairman

B. all state chief ministers

C. state finance ministers

D. RBI governor

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Correct Answer: Option C

Explanation:
The GST Council includes state finance ministers as members, chaired by the Union Finance Minister.

This question belongs to: Economy GK Economy Set 1

Question #3

The term 'Crowding In' refers to:

A. Decrease in private investment due to government spending

B. Increase in private investment stimulated by government spending

C. Decrease in exports due to appreciation

D. Increase in imports due to higher income

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Correct Answer: Option B

Explanation:
Crowding in occurs when government spending (especially on infrastructure) raises the productivity of private capital and stimulates additional private investment.

This question belongs to: Economy GK Economy Set 1

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