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 is levied at a flat rate on all incomes

C. Tax rate increases as income rises

D. Tax rate remains constant as income rises

Answer: Option C

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

Which of the following is not a priority sector category?

A. Housing loans above Rs 50 crore

B. Education

C. Agriculture

D. Micro enterprises

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Correct Answer: Option A

Explanation:
Very large housing loans above prescribed limits are not part of priority sector lending.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the 'Purchasing Power Parity' theory in its absolute form?

A. The exchange rate between two currencies equals the ratio of the countries’ price levels

B. The exchange rate equals the interest differential

C. Exchange rates are determined only by trade balances

D. Only relative changes in prices matter

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Correct Answer: Option A

Explanation:
Absolute purchasing power parity states that the nominal exchange rate should equal the ratio of the domestic to the foreign price level so that a basket of goods costs the same in both countries.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Silver Revolution' is associated with:

A. wool production

B. fish production

C. egg and poultry production

D. milk production

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Correct Answer: Option C

Explanation:
Silver Revolution refers to rapid growth in egg and poultry production.

This question belongs to: Economy GK Economy Set 1

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