Test 2 - Indian Economy - Quiz & Trivia

1. Which of the following is associated with CENVAT?

Gift tax

Wealth Tax

Income Tax

Indirect Tax

CENVAT (Central Value Added Tax) is an indirect tax system in India that is levied on the production and sale of goods and services. It is a form of value-added tax that is charged at each stage of the supply chain, from the manufacturer to the consumer. Therefore, the correct answer is "Indirect Tax" as CENVAT is specifically associated with this type of tax.

Explanation

CENVAT (Central Value Added Tax) is an indirect tax system in India that is levied on the production and sale of goods and services. It is a form of value-added tax that is charged at each stage of the supply chain, from the manufacturer to the consumer. Therefore, the correct answer is "Indirect Tax" as CENVAT is specifically associated with this type of tax.

2. Who among the following got Noble Prize for Economics

Mother Teressa

C.V Raman

Amarthya Sen

Manmohan Singh

Amarthya Sen is the correct answer because he was awarded the Nobel Prize in Economics in 1998 for his contributions to welfare economics and his research on poverty, famine, and development economics. Mother Teresa, C.V. Raman, and Manmohan Singh have not received the Nobel Prize for Economics.

Explanation

Amarthya Sen is the correct answer because he was awarded the Nobel Prize in Economics in 1998 for his contributions to welfare economics and his research on poverty, famine, and development economics. Mother Teresa, C.V. Raman, and Manmohan Singh have not received the Nobel Prize for Economics.

3. Voluntary Disclosure of Income Scheme was started from

1st July 1997

21st July 1999

3rd May 1991

8th June 1995

The correct answer is 1st July 1997. This is the date when the Voluntary Disclosure of Income Scheme was started.

Explanation

The correct answer is 1st July 1997. This is the date when the Voluntary Disclosure of Income Scheme was started.

4. Kar Vivad Samadhan Scheme introduced for voluntary settlement of

Central Sales Tax

Income Tax

Custom and Excise Tax

Wealth

The Kar Vivad Samadhan Scheme was introduced for the voluntary settlement of Custom and Excise Tax. This scheme allows taxpayers to resolve their disputes related to these taxes by paying the disputed amount along with reduced interest and penalty. It aims to reduce litigation and provide a quick and fair resolution to taxpayers.

Explanation

The Kar Vivad Samadhan Scheme was introduced for the voluntary settlement of Custom and Excise Tax. This scheme allows taxpayers to resolve their disputes related to these taxes by paying the disputed amount along with reduced interest and penalty. It aims to reduce litigation and provide a quick and fair resolution to taxpayers.

5. The concept of consumer surplus is useful in which policy?

Monetary Policy

Tax Policy

Investment Policy

Fixing remuneration factors

Consumer surplus refers to the difference between what consumers are willing to pay for a product or service and what they actually pay. In the context of tax policy, consumer surplus is useful in determining the impact of taxes on consumer welfare. By analyzing consumer surplus, policymakers can assess the burden of taxation on consumers and make informed decisions about tax rates and structures. Therefore, the correct answer is Tax Policy.

Explanation

Consumer surplus refers to the difference between what consumers are willing to pay for a product or service and what they actually pay. In the context of tax policy, consumer surplus is useful in determining the impact of taxes on consumer welfare. By analyzing consumer surplus, policymakers can assess the burden of taxation on consumers and make informed decisions about tax rates and structures. Therefore, the correct answer is Tax Policy.