The 'tax incidence' of a tax refers to: MCQ with Answer and Explanation

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The 'tax incidence' of a tax refers to:

A. who legally pays the tax

B. who ultimately bears the economic burden of the tax

C. the tax rate

D. the amount of tax collected

Answer: Option B

Solution (By JKSSB Mock Tests)

Tax incidence is the distribution of the economic burden of a tax between buyers and sellers.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Bank for International Settlements' is headquartered in:

A. London

B. Zurich

C. Basel

D. Geneva

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Correct Answer: Option C

Explanation:
The Bank for International Settlements is headquartered in Basel, Switzerland.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'FDI' in multi-brand retail is allowed up to what percentage?

A. 49%

B. 51%

C. 100%

D. 74%

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Correct Answer: Option B

Explanation:
FDI in multi-brand retail is allowed up to 51% under government approval.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'GST' is a destination-based tax, so tax revenue accrues to:

A. exporting state

B. producing state

C. consuming state

D. centre only

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Correct Answer: Option C

Explanation:
GST is destination-based; tax revenue goes to the state where goods are consumed.

This question belongs to: Economy GK Economy Set 1

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