Question : Which of the following is an example of a capital transfer?
Option 1: A government subsidy to a private company
Option 2: A payment for a good or service
Option 3: A tax on imports
Option 4: A gift from one person to another
Correct Answer: A government subsidy to a private company
Solution : The correct answer is a) A government subsidy to a private company.
A capital transfer refers to the transfer of financial or non-financial assets between sectors, typically without any corresponding exchange of goods or services. It involves the transfer of assets, such as funds or property, that are used to acquire, create, or enhance fixed assets or financial assets.
A government subsidy to a private company can be considered a capital transfer. The government provides funds to the private company, which can be used for acquiring or enhancing fixed assets or financial assets.
Question : Which of the following is not an example of direct tax?
Option 1: property tax
Option 2: tax on assets and gift to the government
Option 3: service tax
Option 4: income tax
Option 1: A government grant to a research institution
Option 3: A tax on income
Option 4: A payment for a loan
Question : Which of the following is an indirect tax?
Option 1: Capital gains tax
Option 2: Goods and services tax
Option 3: Wealth tax
Option 4: Gift tax
Question : Which of the following is an example of a non-tax revenue for a government?
Option 1: Income tax
Option 2: Sales tax
Option 3: License fees
Option 4: Property tax
Question : Which of the following is an example of a transfer payment?
Option 1: A payment for a good or service
Option 2: A salary paid to an employee
Option 3: A pension paid to a retiree
Option 4: A fee paid to a consultant
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