Which of the following is a classification of taxes based on their impact on income distribution? MCQ with Answer and Explanation

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Which of the following is a classification of taxes based on their impact on income distribution?

A. Only ad valorem and specific

B. Progressive, proportional and regressive

C. Only central and state

D. Only direct and indirect

Answer: Option B

Solution (By JKSSB Mock Tests)

Taxes are classified as progressive (rate rises with income), proportional (constant rate) or regressive (rate falls with income) according to their effect on income distribution.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Ayushman Bharat Yojana' has two components: Health and Wellness Centres and:

A. Pradhan Mantri Mudra Yojana

B. Pradhan Mantri Ujjwala Yojana

C. Pradhan Mantri Jan Arogya Yojana

D. Pradhan Mantri Awas Yojana

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Correct Answer: Option C

Explanation:
Ayushman Bharat includes Health and Wellness Centres and PM-JAY.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Wholesale Price Index' in India is released by:

A. RBI

B. NSO

C. Labour Bureau

D. Office of Economic Adviser, Ministry of Commerce and Industry

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Correct Answer: Option D

Explanation:
WPI is released by the Office of Economic Adviser.

This question belongs to: Economy GK Economy Set 1

Question #3

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The 'Goods and Services Tax' on metro rail travel is:

A. 12%

B. 18%

C. 5%

D. 0%

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Correct Answer: Option C

Explanation:
Metro rail travel attracts 5% GST.

This question belongs to: Economy GK Economy Set 1

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