Which of the following taxes is progressive in nature? MCQ with Answer and Explanation

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Which of the following taxes is progressive in nature?

A. Customs duty

B. Income tax

C. Sales tax

D. Excise duty

Answer: Option B

Solution (By JKSSB Mock Tests)

A progressive tax is one where the tax rate increases with the increase in the taxable amount. Personal income tax in India is progressive with different slabs.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Debt to GDP ratio' in India is monitored as part of which framework?

A. Exchange rate policy

B. Trade policy

C. FRBM fiscal policy framework

D. Monetary policy framework

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Correct Answer: Option C

Explanation:
Debt to GDP ratio is a key parameter under the FRBM framework.

This question belongs to: Economy GK Economy Set 1

Question #2

In the Keynesian model, the consumption function is given by C = a + bY, where 'b' represents:

A. Marginal propensity to consume

B. Autonomous consumption

C. Average propensity to consume

D. Marginal propensity to save

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Correct Answer: Option A

Explanation:
In the consumption function C = a + bY, 'a' is autonomous consumption and 'b' is the marginal propensity to consume (MPC).

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on electricity is:

A. 18%

B. not under GST

C. 0%

D. 5%

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Correct Answer: Option B

Explanation:
Electricity is outside GST.

This question belongs to: Economy GK Economy Set 1

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