Which of the following is an example of a regressive tax?
A. Goods and Services Tax (GST)
B. Income tax with higher rates for higher income
C. Wealth tax
D. Corporate tax with progressive slabs
Answer: Option A
Solution (By JKSSB Mock Tests)
GST is largely regressive because lower-income groups spend a higher proportion of their income on consumption, bearing a relatively higher tax burden compared to higher-income groups.
Explanation:
The traditional SCP paradigm posits a causal chain from market structure (concentration, entry barriers) to firm conduct (pricing, advertising) to market performance (profits, efficiency).
Explanation:
The Lorenz Curve plots the cumulative percentage of income against the cumulative percentage of population and is used to measure income inequality (along with the Gini coefficient).
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