Which of the following best explains the cascading effect pf taxation

1.	Which of the following best explains the cascading effect pf taxation ?
A.	When tax imposition leads to a disproportionate increase in prices by an extent more than the rise in the tax.
B.	When tax imposition leads to a disproportionate decrease in prices by an extant more than the decrease in imports.
C.	When tax imposition leads to a disproportionate decrease in imports.
D.	When tax imposition leads to a disproportionate decrease in exports.
Answer» B. When tax imposition leads to a disproportionate decrease in prices by an extant more than the decrease in imports.

Discussion

No Comment Found

Related MCQs

When the RBI wants to inject liquidity int economy it may adopt the following : 1. Buy the government securities from the banks . 2. Enter into reverse Operations 3. Raises cash Reserve Ration 4 Reduce SLR. Select the correct answer using the codes given below :
Which of the following can be the outcomes of very high inflation in the economy? (1) Reduction in economic growth (2) Increase in savings (3) Reduction in exports Select the correct answer using the codes below :
Consider the following statements in regard to Gross Domestic product (GDP) of India :(1) Between 1951 and 2000 the share of agriculture in GDP fell from around 56% to around 25%(2) Share the services sector in GDP was less than industrial sector between 1951 and 2000 Which of the statements given below is/are not correct?
Which of the following are correct in regard to the austerity measures taken by a country going through adverse economy conditions: 1 These measures include a reduction in spending . 2 These measures include increasing in tax3 These measures include reduction in budget deficit. Select the correct answer using the codes given below :
Consider the following statements in regard to Headline inflation : (1) It provides an accurate picture of the inflation in the country. (2) It is affected by short term transitory effect on prices of products. Which of the statements given above is/are correct?
Consider the following statement :(1) Higher growth in GDP and population can occur together.(2) Per capita income always decreases with high population growth.Which of the statements given above is/are correct?
Consider the following statements in regard to devaluation and depreciation of a currency:(1) Devaluation is an activity conducted by central government whereas depreciation happens due to market forces. (2) In both the devaluation and depreciation currency loses value against other currencies in a floating currency exchange market:Which of the statements given above is/are correct?
Consider the following statements in regard to 'Marginal Standing Facility (MSF)' of RBI :(1) It will help in reducing volatility in the overnight lending rates in the inter-bank market. (2) The borrowing under the MSF should be over and above the statutory liquidity requirement. Which of the statements given above is/are correct ?
The volatility in the Indian share market is due to 1. inflow and outflow of foreign funds. 2. fluctuations in foreign capital markets. 3. changes in the monetary policy Which of the above mentioned causes are correct?
Consider the following statement in regard to reserve currency :(1) Reserve currency acts at the international pricing currency in the global market for commodities like oil and gold. (2) The country whose local currency is accepted as reserve currency gets an added advantage in terms of lower commodity rates in the international market. Which of the statements given above is / are correct

Which of the following best explains the cascading effect pf taxation ?

Discussion

No Comment Found

Related MCQs

Reply to Comment