The 'indirect tax' includes which of the following? MCQ with Answer and Explanation

The 'indirect tax' includes which of the following?
A. GST and excise duty
B. Wealth tax
C. Corporate tax
D. Income tax
Answer: Option A
Solution (By JKSSB Mock Tests)
GST and excise duty are indirect taxes.

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Practice More Economy Set 1 Questions

Question #1
In the context of market failure, 'Asymmetric Information' leads to:
A. Zero transaction costs
B. Efficient market outcomes
C. Perfect competition
D. Adverse selection and moral hazard

Correct Answer: Option D


Explanation:
Asymmetric information, where one party has more information than the other, can lead to adverse selection (before the contract) and moral hazard (after the contract).

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the 'Save More Tomorrow' programme designed by Thaler and Benartzi?
A. A mandatory increase in taxes
B. A programme that ignores behavioural biases
C. A commitment device that allows employees to pre-commit to allocating a portion of future salary increases to retirement savings
D. An immediate large increase in current contributions

Correct Answer: Option C


Explanation:
Save More Tomorrow is a behavioural intervention that invites employees to commit in advance to increasing their retirement contribution rates whenever they receive pay raises, thereby overcoming present bias and inertia.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a type of unemployment recognised in economics?
A. Frictional unemployment
B. Structural unemployment
C. Cyclical unemployment
D. Nominal unemployment

Correct Answer: Option D


Explanation:
The main types of unemployment are frictional, structural, cyclical and seasonal. 'Nominal unemployment' is not a standard classification.

This question belongs to: Economy GK Economy Set 1