Tag: social science

Quizzes (684) Questions (1162)

Questions Related to social science

Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

Which of the following is NOT true about indirect tax?

  1. Wealth tax is direct tax

  2. It is imposed by the central government but collected by the state government and handed over to central govt.

  3. In the budget of 2016-17, income tax collection was more than non tax revenue

  4. In the budget of 2016-17, income tax collection was 14% of total revenue of the central government
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

The practice of RBI lending to government through ad hoc treasury bills is _______.

  1. currently is vogue

  2. abolished

  3. will soon be abolished

  4. none of above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The practice of the RBI lending to the government through ad hoc treasury bills was abolished in 1997 to ensure greater fiscal discipline and central bank independence.

Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

Which of the following are direct taxes?
I. Income tax
II. Goods & Service Tax
III. Gift Tax
IV. Custom Duty

 V. Wealth tax. 

  1. II, IV &V only

  2. I only

  3. I & III only

  4. I, III &V only
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Direct taxes are those where the incidence and impact fall on the same person. Income tax, Gift tax, and Wealth tax are direct taxes, while GST and Custom Duty are indirect taxes.

Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

GDP at factor cost = ___________.

  1. GDP at market price + Subsidies

  2. GDP at market price + Subsidies - Indirect tax

  3. GDP at market price - Subsidies - Indirect tax

  4. GDP at market price + Subsidies + Indirect tax
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

GDP at factor cost is calculated by taking GDP at market price, subtracting indirect taxes, and adding subsidies, as market prices include the tax burden and exclude government subsidies.

Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

Which of the following equation is correct?

  1. Value at Factor Cost + Indirect Tax - Subsidies = Value at market prices

  2. Value at Factor Cost - Indirect Tax - Subsidies = Value at market prices

  3. Value at Factor Cost + Indirect Tax + Subsidies = Value at market prices

  4. Value at Factor Cost - Indirect Tax + Subsidies = Value at market prices
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

To arrive at market price from factor cost, you must add indirect taxes (which increase price) and subtract subsidies (which decrease price). Thus, Factor Cost + Indirect Tax - Subsidies = Market Price.