10 Questions
What is the primary role of the government in resource allocation according to the text?
To use taxation and subsidies to indirectly influence resource allocation
Which of the following is NOT mentioned as an example of a public good in the text?
Education
What is the purpose of the central government's annual budget allocation?
To allocate resources for essential activities and developmental activities
How does the government use fiscal operations to affect the distribution of national income and resources?
Through progressive direct taxes and public expenditure on social infrastructure
What is the range of tax rates in India's direct tax system, according to the text?
5% to 30% plus surcharge
What is the primary reason for the government to intervene in resource allocation, according to the text?
To provide public goods that the market mechanism cannot provide
Which of the following is NOT a factor that the government considers in adjusting resource allocation?
Consumer preferences
What is the purpose of public expenditure on social infrastructure and subsidies, according to the text?
To reduce income inequality
Which of the following statements is NOT true based on the information provided in the text?
The market mechanism can provide all goods and services for collective wants
What is the primary tool used by the government to promote or discourage private investment?
Positive and negative incentives
Explore the challenges associated with direct taxes such as arbitrary exemption limits, difficulty in achieving progression in taxation, and inconvenience due to complex procedures and formalities. Understand how these factors impact equity and psychological well-being when it comes to filing tax returns.
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