The 'Goods and Services Tax' on airline services is: MCQ with Answer and Explanation

The 'Goods and Services Tax' on airline services is:
A. 12% for all classes
B. 5% economy and 12% business class
C. 5% for all classes
D. 18% for all classes
Answer: Option B
Solution (By JKSSB Mock Tests)
Economy class air travel is 5%, business class is 12%.

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Practice More Economy Set 1 Questions

Question #1
In the context of banking theory, the 'Diamond-Dybvig' model explains:
A. Only the role of banks in monitoring firms
B. Only the role of banks in solving adverse selection
C. Why banks never face runs
D. The existence of banks as providers of liquidity insurance and the possibility of bank runs

Correct Answer: Option D


Explanation:
The Diamond-Dybvig model shows that banks transform illiquid assets into liquid liabilities, providing liquidity insurance to depositors, but that this arrangement is vulnerable to self-fulfilling runs.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the Indian agricultural sector?
A. Complete independence from monsoon
B. High and uniform productivity across states
C. Predominance of small and marginal farmers
D. High capital intensity comparable to industry

Correct Answer: Option C


Explanation:
Indian agriculture is dominated by small and marginal landholdings, leading to challenges of scale, productivity and access to credit and technology.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'National Industrial Classification' is used in India for:
A. stock trading
B. population census
C. tax collection
D. classifying economic activities

Correct Answer: Option D


Explanation:
NIC classifies economic activities for statistical purposes.

This question belongs to: Economy GK Economy Set 1