Which of the following is a characteristic of a progressive tax system? MCQ with Answer and Explanation

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Which of the following is a characteristic of a progressive tax system?

A. Tax rate increases as income rises

B. Tax rate remains constant as income rises

C. Tax rate decreases as income rises

D. Tax is levied at a flat rate on all incomes

Answer: Option A

Solution (By JKSSB Mock Tests)

In a progressive tax system, the tax rate increases with an increase in the taxable income, placing a higher burden on higher-income groups.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

A monopsony is a market situation with:

A. a single buyer

B. two sellers

C. many buyers and sellers

D. a single seller

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Correct Answer: Option A

Explanation:
A monopsony is a market structure in which there is only one buyer of a good or service.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on hotel accommodation Rs 1,000 to Rs 7,500 is:

A. 18%

B. 28%

C. 5%

D. 12%

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Correct Answer: Option D

Explanation:
Hotel rooms in this tariff range attract 12% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The Labour Force Participation Rate is calculated as:

A. total population divided by employed

B. employed divided by unemployed

C. unemployed divided by labour force multiplied by 100

D. labour force divided by working-age population multiplied by 100

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Correct Answer: Option D

Explanation:
LFPR = (labour force / working-age population) × 100.

This question belongs to: Economy GK Economy Set 1

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