1.
The shared burden of taxation on consumer and producer implies
A
Elastic Supply and Demand
B
Inelastic Supply and Demand
C
Elastic Supply and Inelastic Demand
D
Inelastic Supply and Elastic Demand
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The shared burden of taxation on consumer and producer implies
Elastic Supply and Demand
Inelastic Supply and Demand
Elastic Supply and Inelastic Demand
Inelastic Supply and Elastic Demand
The ultimate burden of taxation on producer implies
Inelastic Supply and Elastic Demand
Elastic Supply and Demand
Inelastic Supply and Demand
Elastic Supply and Inelastic Demand
The term incidence of taxation refers to
Initial burden of the tax
Final burden of the tax
Burden of tax on government
None of the above
The term impact of taxation means
Initial burden of the tax
Ultimate burden of the tax
Burden of tax on government
None of the above
An increase in the direct tax means it is
Inflationary
Anti-inflationary
Having no impact on price
None of the above
Direct tax are..........................in nature
Progressive
Equitable
Regressive
None of the above
Generally, the nature of indirect tax is
Progressive
Regressive
Proportional
None of the above
.......................based on the principle higher the income, higher the tax
Progressive Tax
Proportion Tax
Regressive Tax
Digressive Tax
An example of direct tax is
Sales tax
Central excise duty
Custom duty
Wealth tax
Specific duty is charged according to
Value of a commodity
Weight of the commodity
Size of the commodity
None of the above
An ad valorem tax is charged according to the
Value of a commodity
Weight of the commodity
Size of the commodity
None of the above
Pick out the factor which is not a demerit of indirect taxes
Unjust to poor
Inflationary in nature
A tool of economic policy
High administrative cost
Pick out the factor which is not a feature of indirect taxes
Convenience
Tax evasion is difficult
Fair to the poor
Powerful tool of economic policy
Pick out the characteristic which is not true of direct tax
Simplicity
Elasticity
Creates Civic Consciousness
Encourages savings and investment
Pick out the tax which is not a part of indirect tax
Excise Duty
Sales Tax
Entertainment Tax
Corporate Tax
Pick out the incorrect statement.
In the short period, shifting of a tax is easy
In the long period shifting of a tax is easy
When supply is elastic, shifting is easy
None of the above
Pick out the statement which is not true with regard to tax shifting
Shifting becomes difficult if the people purchase from outside the locality
None of the above
A purely local tax can be shifted if it is heavy.
A purely local tax shifted if it is light
Which factor has no role in the shifting of a tax?
Nature of Demand
Income of the consumer
Change in prices
Elasticity of demand and supply
After levying of a tax, if the price does not rise at all, it means that
Shifting has taken place
Any of the above
Incidence of the tax remains with producer
Tax has been shifted backward
Impact of a tax refers to
Indirect real burden
None of the above
Final money burden
Immediate money burden