The 'Goods and Services Tax' on goods and services is a tax on: MCQ with Answer and Explanation

The 'Goods and Services Tax' on goods and services is a tax on:
A. income
B. consumption
C. wealth
D. property
Answer: Option B
Solution (By JKSSB Mock Tests)
GST is a tax on consumption of goods and services.

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Practice More Economy Set 1 Questions

Question #1
Tax Deduction at Source means:
A. tax is waived
B. the payer deducts tax at the time of payment and deposits it with the government
C. the taxpayer pays tax after assessment
D. tax is paid by the employer after salary payment

Correct Answer: Option B


Explanation:
TDS requires the payer to deduct tax at source and deposit it with the government.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of economic development, the 'Big Push' theory is associated with:
A. Complete reliance on market forces
B. Gradualism in investment
C. Only agricultural development
D. The need for a minimum quantum of investment to overcome indivisibilities

Correct Answer: Option D


Explanation:
The Big Push theory, associated with Rosenstein-Rodan, argues that a large, coordinated investment is required to overcome complementarities and indivisibilities in developing economies.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of international trade, the 'Stolper-Samuelson Theorem' predicts that:
A. Only labour always gains from trade
B. An increase in the relative price of a good raises the real return to the factor used intensively in its production
C. Factor prices are independent of goods prices
D. Trade benefits all factors of production equally

Correct Answer: Option B


Explanation:
The Stolper-Samuelson theorem states that a rise in the relative price of a good increases the real return to the factor used intensively in that good and reduces the real return to the other factor.

This question belongs to: Economy GK Economy Set 1