Which of the following is a feature of the Indian tax system after the introduction of GST? MCQ with Answer and Explanation

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Which of the following is a feature of the Indian tax system after the introduction of GST?

A. Only origin-based taxation

B. Persistence of multiple cascading taxes

C. A unified destination-based tax on goods and services with input tax credit mechanism

D. Complete elimination of all state-level taxes without dual structure

Answer: Option C

Solution (By JKSSB Mock Tests)

GST replaced a large number of cascading central and state taxes with a unified destination-based tax that permits seamless input tax credit.

This question belongs to: Economy GK Economy Set 1

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Question #1

Which of the following is NOT a determinant of aggregate demand?

A. Consumption expenditure

B. Technology level

C. Investment expenditure

D. Government expenditure

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Correct Answer: Option B

Explanation:
Technology primarily affects aggregate supply. Aggregate demand is determined by consumption, investment, government spending and net exports.

This question belongs to: Economy GK Economy Set 1

Question #2

The New Economic Policy of 1991 was based on the principles of:

A. nationalization and central planning

B. import substitution and trade restrictions

C. liberalization, privatization and globalization

D. land reforms and cooperatives

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Correct Answer: Option C

Explanation:
The 1991 New Economic Policy was based on liberalization, privatization and globalization.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of growth theory, the 'AK Model' is an example of:

A. An endogenous growth model without diminishing returns to capital

B. A model with exogenous technological progress only

C. A neoclassical model with diminishing returns

D. A model without capital accumulation

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Correct Answer: Option A

Explanation:
The AK model assumes a production function linear in capital (Y = AK), thereby eliminating diminishing returns and generating endogenous long-run growth driven by capital accumulation.

This question belongs to: Economy GK Economy Set 1

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