Multiple choice

Pick up the correct statement(s).

  1. Inflation is a persistent fall in the price level.

  2. The Indian direct tax structure relies on a very narrow population base.

  3. Mixed income of self-employed means gross profits received by proprietors.

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Indian direct tax structure relies on a very narrow population base because only a small percentage of Indians file income tax returns (historically around 3-4%). This is due to large agricultural income exemption, high threshold limits, and tax evasion. Inflation is a persistent RISE in price level, not fall. Mixed income of self-employed includes income from both labor and capital (unincorporated enterprises), not just gross profits.

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