Public Economics Multiple Choice Questions and Answers

51. In India, personal income tax is levied on individuals by

1. Central Government
2. State Government
3. Local bodies
4. None of these

52. In proportional tax system, the rates of tax remain

1. Constant
2. increasing
3. decreasing
4. zero

53. In the case of direct tax, impact and incidence are on

1. Different person
2. Same person
3. Sellers
4. None of these

54. In the case of regressive tax, the rate of tax.....................as income increases

1. increases
2. remains constant
3. Decreases
4. None

55. In the following which is the characterstic of a tax

1. Compulsory
2. optional
3. forced
4. nationality

56. In which year GST was first introduced

1. 1952
2. 1953
3. 1954
4. 1955

57. Incidence of a tax refers to the........................burden of tax

1. Initial
2. Ultimate
3. Intermediate
4. None

58. Incidence of tax means

1. Direct money burden
2. indirect money burden
3. actual tax burden
4. none of these

59. Indirect taxes have an element of

1. Equitable
2. certainity
3. economical
4. encourage honesty

60. Laffer curve suggest that the

1. Relationship between tax revenue and tax rates is U-shaped
2. Relationship between GDP growth rate and tax rates is U-shaped
3. Relationship between tax revenue and tax rates is inverted U-shaped
4. Relationship between savings rate and tax rate is inverted U-shaped