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Home Questions SXC79S73ME
Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Read the following statements - Assertion (A) and Reason (R):
Assertion: Indirect taxes are inconvenient to realise.
Reasoning: Indirect taxes are included in prices of goods and services and collected directly at stores.
From the given alternatives choose the correct one:

Options:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R) is false.

Assertion (A) is false but Reason (R) is true.

Correct Answer:

Assertion (A) is false but Reason (R) is true.

Explanation:

The correct answer is Option 4: Assertion (A) is false but Reason (R) is true.

Assertion: Indirect taxes are inconvenient to realise. This is incorrect. Indirect taxes are convenient to realise since they are included in prices of goods and services.  State authorities find it convenient to levy indirect taxes because they are collected directly at the stores/factories which helps in saving a lot of time and effort.
Reasoning: Indirect taxes are included in prices of goods and services and collected directly at stores. This is correct.

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