Economics (Part – VIII)

1. Which country was the first to implement Goods and Services Tax (GST)? [S.S.C. Online C.G.L. (T-I) 4.06.2019(Shift-I)]

(a) Germany
(b) The USA
(c) France
(d) Canada

Correct Answer: (c) France

Solution:France introduced the Goods and Services Tax (GST) for the first time in 1954.

2. Which of the following statements is false about Goods and Services Tax? [S.S.C. Online MTS (T-I) 21.08.2019 (Shift-I)]

(a) It ends the far reaching effect of the tax.
(b) It has no compliance cost.
(c) It resolved disputes related to the classification of goods and services.
(d) Goods and Services Tax would not be an expense to the retail sellers and therefore there is no hidden taxes.

Correct Answer: (b) It has no compliance cost.

Solution:Option (b) is not correct in respect of Goods and Services Tax, whereas all the other three options are correct. The Goods and Services Tax (GST) is applicable in India from 1st July, 2017.

3. How many members are there in the GST council? [S.S.C. Online MTS (T-I) 2.08.2019 (Shift-II)]

(a) 33
(b) 35
(c) 25
(d) 23

Correct Answer: (a) 33

Solution:GST council is an association of a total of 33 trusted supporting GST council members.

4. The GST council is headed by the: [S.S.C. Online CHSL (T-I) 16.10.2020 (Shift-I)]

(a) RBI Governor
(b) SEBI Chairman(SEBI)
(c) Prime Minister
(d) Union Finance Minister

Correct Answer: (d) Union Finance Minister

Solution:The GST council is headed by the finance minister. The current head of the GST council is Nirmala Sitharaman.

5. The GST (Goods and Services Tax), recently passed by Government will be levied on which of the following products? [S.S.C. Online C.G.L.(T-I) 29.08.2016 (Shift-III)]

(a) Petroleum Crude
(b) Tobacco
(c) Natural Gas
(d) Aviation Turbine Fuel

Correct Answer: (b) Tobacco

Solution:The GST bill (Goods and Services Tax) recently passed by the government will be levied on tobacco.

6. Which of the following areas make the largest contribution to national income in India? [S.S.C. Online C.G.L. (T-I) 10.09.2016 (Shift-III)]

(a) Industry
(b) Services
(c) Agriculture
(d) Mining

Correct Answer: (b) Services

Solution:According to the data released in question period and February 2023, the service sector has the highest contribution in India's national income. As per the data released in January, 2023, the contribution of primary sector is 21 per cent, secondary sector is 26.5 per cent and tertiary sector is 52.5 per cent in GVA at basic prices in the year 2021-22 (1 RE.).

7. Which of the following states had the highest per capita income for the year 2019-2020? [S.S.C. Online CHSL (T-I) 6.08.2021 (Shift-III)]

(a) Goa
(b) Gujarat
(c) Sikkim
(d) Kerala

Correct Answer: (a) Goa

Solution:As per the report of the Ministry of Statistics and Programme Implementation (released on 7 January 2020), the state per capita income of Goa is highest in the country followed by Delhi and Sikkim.

8. Per capita income is also called_________. [S.S.C. Online MTS (T-I) 10.10.2017 (Shift-II)]

(a) Gross National Product
(b) GDP
(c) Average income
(d) total income

Correct Answer: (c) Average income

Solution:

Per capita income is also called average income. It is one of the three measures for calculating the Human Development Index of a country.

9. Average income is also called .............. [S.S.C. Online MTS (T-I) 10.10.2017 (Shift-I)]

(a) Net National Income
(b) Net National Product
(c) per capita income
(d) total income

Correct Answer: (c) per capita income

Solution:Average income is also called per capita income. It is the mean income of the people in an economic unit such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by total population.

10. A country with a high per capita income is developed than a country with a low per capita income. [S.S.C. Online MTS (T-I) 5.10.2017 (Shift-III)]

(a) more
(b) less
(c) equal
(d) Equal

Correct Answer: (a) more

Solution:A country with a high per capita income is more developed than a country with a low per capita income.