App Logo

No.1 PSC Learning App

1M+ Downloads
How is the tax rate behavior under a proportional tax system?

AIt remains constant regardless of the tax base

BIt decreases with income

CIt increases with income

DIt varies unpredictably

Answer:

A. It remains constant regardless of the tax base

Read Explanation:

  • Under proportional taxation, also known as a flat tax, the tax rate is fixed and applied uniformly to all income levels, making calculation straightforward


Related Questions:

Which of the following best describes the core principle of a knowledge economy?

  1. It is an economic system where the production of goods and services is primarily based on knowledge-intensive activities and innovation.
  2. It relies heavily on the extraction and processing of natural resources.
  3. It emphasizes the accumulation of physical capital over intellectual capital.
  4. It is characterized by a decline in the importance of skilled labor.
    The Gender Inequality Index (GII) provides insights into gender disparities in which key sectors?

    The National Social Assistance Programme (NSAP) is aligned with which principles of the Indian Constitution?

    1. The NSAP is in accordance with the Directive Principles of State Policy.
    2. The NSAP is based on the Fundamental Rights enshrined in the Constitution.
    3. The NSAP adheres to the Preamble of the Constitution.
      When were the 17 Sustainable Development Goals (SDGs) adopted?

      Which of the following statements about the Usual Principal Activity Status (UPS) method is incorrect?

      1. The UPS concept is used to determine a person's usual activity status as employed, unemployed, or outside the labor force.
      2. This method estimates persons who remained unemployed for only a short duration, typically less than a month.
      3. Persons covered by UPS may be classified based on their work or availability for work in both principal and subsidiary sectors.