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 decreases as income rises

B. Tax rate increases as income rises

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

D. Tax rate remains constant as income rises

Answer: Option B

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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Question #1

The concept of 'Subjective Well-Being' in economics refers to:

A. Only physical health indicators

B. Only objective measures of income

C. Only environmental quality

D. Individuals’ own evaluations of their lives, typically measured by surveys of happiness or life satisfaction

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Correct Answer: Option D

Explanation:
Subjective well-being encompasses self-reported measures of happiness, life satisfaction and emotional states, which have become an important complement to traditional objective indicators of welfare.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on solar panels is:

A. 5%

B. 18%

C. 12%

D. 28%

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Correct Answer: Option A

Explanation:
Solar panels and modules attract 5% GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Essential Commodities (Amendment) Act, 2020' deregulated which commodities?

A. Medicines

B. Fertilizers

C. Cereals, pulses, oilseeds, edible oils and onion

D. Petroleum and diesel

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Correct Answer: Option C

Explanation:
The 2020 amendment removed cereals, pulses, oilseeds, edible oils and onion from the Essential Commodities Act.

This question belongs to: Economy GK Economy Set 1

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