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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Match List I with List II

List I List II
A. Progressive Tax I.Tax on Imported and Exported goods
B. Proportional Tax II.Income Tax
C. Wealth Tax III.Tax on Firms
D. Custom duty IV.Paper Tax

Choose the correct answer from the options given below:

Options:

A-I, B-II, C-III, D-IV

A-I, B-II, C-IV, D-III

A-II, B-III, C-IV, D-I

 A-II, B-III, C-I, D-IV

Correct Answer:

A-II, B-III, C-IV, D-I

Explanation:

The correct answer is option (3) : A-II, B-III, C-IV, D-I

A. Progressive Tax (II. Income Tax): Progressive taxes increase as a percentage of income, meaning higher earners pay a larger share of their income in taxes. Income tax is a classic example of a progressive tax.
B. Proportional Tax (III. Tax on Firms): Proportional taxes take a fixed percentage of the t

ax base, regardless of the amount. Corporate taxes levied on a company's profit can be considered a proportional tax (though some corporate tax structures might have elements of progressivity).

C. Wealth Tax (IV. Paper Tax): Taxes like wealth tax and gift tax in India which carry their significance only on paper and have no significance in terms of revenue yield are called paper taxes.

D. Custom duty (I. Tax on Imported and Exported goods):

List I List II
A. Progressive Tax II.Income Tax
B. Proportional Tax III.Tax on Firms
C. Wealth Tax IV.Paper Tax
D. Custom duty I.Tax on Imported and Exported goods

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