Monday, April 1, 2013

What is Value Added Tax (VAT)

Q. What is Value Added Tax (VAT)
  1 A simple, transparent, easy to pay tax imposed on consumers
  2 A new initiative taken by the government to increase the tax-burden of high income groups
  3 A single tax that replaces state taxes like, surcharge turnover tax and sales tax, etc.
  4 A new tax to be imposed on the producers of capital goods
    Ans:1 

Q. The difference between visible exports and visible imports is defined as—
  1 Balance of trade
  2 Balance of payment
  3 Balanced terms of trade
  4 Coins from trade
    Ans:1 

Q. Given the money wages, if the price level in an economy increases, then the real wages will—
  1 Increase
  2 Decrease
  3 Remain constant
  4 Become flexible
    Ans:2 

Q. The World Trade Organisation (WTO) was earlier known as—
  1 GATT
  2 UNICEF
  3 UNCTAD
  4 FAO
    Ans:1 

Q. A firm is in equilibrium when its—
  1 Marginal cost equals the marginal revenue
  2 Total cost is minimum
  3 Total revenue is maximum
  4 Average revenue and marginal revenue are equal
    Ans:1 

Q. In the law of demand, the statement ‘other things remain constant’ means—
  1 Income of consumer should not change
  2 Prices of other goods should not change
  3 Taste of consumer should not change
  4 All of the above
    Ans:4 

Q. Special Economic Zones are being set up in—
  1 Agra, Kanpur and Modinagar
  2 Agra, Kanpur and Greater Noida
  3 Meerut, Moradabad, Kanpur and Noida
  4 Moradabad, Kanpur, Noida and Greater Noida
    Ans:2 

Q. Select the one which is not the responsibility of Gram Sabha under the Rural Employment Guarantee Act, 2005
  1 To recommend projects to the Gram Panchayat and prepare list of possible works
  2 To receive applications for work and issue a dated receipt
  3 To monitor the execution of works within the Gram Panchayat
  4 To conduct regular social audits of all the projects taken up with in the Gram Panchayat
    Ans:2 

Q. A labour intensive industry is one that—
  1 Requires hard manual labour
  2 Pays adequate wages to the labour
  3 Employs more hands
  4 Provides facilities to labour
    Ans:3 

Q. Invisible export means export of—
  1 Services
  2 Prohibited goods
  3 Unrecorded goods
  4 Goods through smuggling
    Ans:1 

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