Question : The main effect of direct taxes is on:
Option 1: food prices
Option 2: consumer goods
Option 3: capital goods
Option 4: income
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Correct Answer: income
Solution : The correct option is income.
Direct taxes are levied against particular individuals or entities and cannot be passed on to another party. These taxes are computed depending on the taxpayer's income, profits, or assets. Therefore, the primary impact of direct taxes is on the income and wealth of people or businesses.
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Question : Buildings, machinery, tools, and equipment are a few examples of the capital goods that firms employ to produce their goods and services.
Option 1: Consumer goods
Option 2: Inferior goods
Option 3: Intermediate goods
Option 4: Capital goods
Question : Excise duty is levied on
Option 1: Sale of goods
Option 2: Production of goods
Option 3: Import of goods
Option 4: Export of goods
Question : What will be the effect on inferior commodities when the income of the consumers rises?
Option 1: Negative effect
Option 2: Positive effect
Option 3: No effect
Option 4: First increase then decrease
Question : The reverse effect of X-ray emission is
Option 1: Raman effect
Option 2: Compton effect
Option 3: Zeeman effect
Option 4: Photoelectric
Question : Which of the following is not included in capital receipts?
Option 1: Foreign aid
Option 2: Taxes
Option 3: Recovery of loans
Option 4: Borrowings
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