The 'Goods and Services Tax' is applicable in: MCQ with Answer and Explanation

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The 'Goods and Services Tax' is applicable in:

A. only states

B. only union territories

C. all states and union territories

D. only special economic zones

Answer: Option C

Solution (By JKSSB Mock Tests)

GST applies throughout India including states and union territories.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Which of the following is a characteristic of a Giffen good?

A. Demand decreases as price increases

B. It is a luxury good

C. Demand increases as price increases due to strong negative income effect

D. Income elasticity is positive

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Correct Answer: Option C

Explanation:
A Giffen good is an inferior good for which the negative income effect outweighs the substitution effect, resulting in an upward-sloping demand curve.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of money supply, M3 is also known as:

A. High-powered money

B. Reserve money

C. Narrow money

D. Broad money

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Correct Answer: Option D

Explanation:
M3 is referred to as broad money and includes M1 plus time deposits with banks. Reserve money or high-powered money is the monetary base.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of the Indian tax system after the introduction of GST?

A. Complete elimination of all state-level taxes without dual structure

B. Persistence of multiple cascading taxes

C. A unified destination-based tax on goods and services with input tax credit mechanism

D. Only origin-based taxation

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Correct Answer: Option C

Explanation:
GST replaced a large number of cascading central and state taxes with a unified destination-based tax that permits seamless input tax credit.

This question belongs to: Economy GK Economy Set 1

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