Bissoy.com
Doctors Medicines MCQs Q&A

Consider the following statements about impact of tax: 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?

Consider the following statements about impact of tax: 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct? Correct Answer Both 1 and 2

  • Both the statements are correct with reference to tax impact on inelasticity of supply and demand.
  • A tax will shift forward to consumers if the demand is inelastic relative to supply and tax will shift backward to producers if the supply is relatively more inelastic than demand.

Related Questions

Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
Which of the following statement is/are correct?
1. When the percentage change in demand is greater than that of price, then demand is relatively inelastic.
2. When the demand remains unchanged at all price variation, it is perfectly inelastic.
Select the correct answer
Which of the following components are true about tax planning?
1. Tax planning is the process of analyzing a financial plan or a situation from a tax perspective.
2. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency.
3. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success.
4. Tax planning comprises various considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures.
5. The chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome.
For the reaction, A = X + Y, the respective concentrations are CA, CX and CY. The forward reaction rate constant is kf and the backward reaction rate constant is kb. Choose the correct statement from the following:
P. At equilibrium, kf CA > kB CxCy
Q. If the reaction is irreversible than, kb CXCY = 0
R. The backward reaction rate will essentially be first order, if the forward reaction rate is first order.
S. Activation energy for the first order forward reaction will be independent of temperature.
Read the given statements and conclusions carefully. Assuming that the information given in the statements is true, even if it appears to be at variance with commonly known facts, decide which of the given conclusions logically follow(s) from the statements. Statements: Some rock-stars are producers. All producers are designers. All workers are producers. Conclusions: I. Some rock-stars are designers. II. All workers are designers. III. No worker is a rock-star.
For thyristor operation, following statements are given: (i) The supply voltage must be greater than the forward break overvoltage. (ii) The supply voltage must be less than the forward break overvoltage. (iii) ILatching < Iholding (iv) ILatching > Iholding Which of the above statements are correct? Choose the correct answer from the code given below:
In the following question, the 1st and the last part of the sentence/ passage are numbered 1 and 6. The rest of the sentence/passage is split into four parts and named P, Q, R and S. These four parts are not given in their proper order. Read the sentence/passage and find out which of the four combinations is correct. 1. The Goods and Services Tax (GST) is imposed on the supply of products and/or services within the country. P. This can be achieved by charging uniform tax rates and eliminating economic barriers. Q. The objective of GST is to drive India towards becoming an integrated economy. R. These include Service Tax, Purchase Tax, Central Excise Duty, Value Added Tax, Entry Tax, Luxury Tax, Local Body Taxes, etc. S. It subsumes multiple indirect taxes that are imposed by the State Governments or the Central Government 6. Thus, it will make the country a common national market
The conditions regarding selection from a list of suitable candidates to be called for interview after a written examination for appointment of management-level persons to a multi-national company providing accounting services and sales are mentioned below. Candidates: a) Must have a Bachelor's degree in Basic Science with 65% or more marks or BE with 55% or more marks. b) Must have passed the examination with 70% or more marks. c) Age must be between 25 to 30 years as of 1/4/18. d) Must have 3 years of experience in an Accounting Institution and must have a Diploma in Accounting with 60% or more marks. e) Must be currently getting CTC of Rs. 6 lakh or more per annum. If the candidate: 1) If he fulfills all the other conditions other than A above, he will be designated as Junior Accountant. 2) If he fulfills all the other conditions other than (d) and (e) above, he can be designated as Trainee-Accountant. If he fulfills all the above conditions including 5 years of experience, he can be designated as a Senior Accountant. He can be designated as Manager (Accounts) if he fulfills all the above criteria including educational qualifications of CA/ ICWA/ MBA (Finance). Study all the above information and answer the following question. Varun has passed the CA exam and has a bachelor's degree in basic science and a diploma in accountancy, having scored 75% or more in the written examination during his entire career and also in the written examination. His age is 27 years and with 4 years of experience in Accountancy, he has a CTC salary of 18 lakhs per annum. To which of the following positions can he be referred? Select from the given options.
In the following question, two statements are given each followed by two conclusions I and II. You have to consider the statements to be true even ifthey seem to be at variance from commonly known facts. You have to decide which of the given conclusions, if any, follows from the given statements. Statement: (I) In the GST Model in India, it would be dual tax (GST) with the center and states simultaneously levying tax on a common base tax.
(II) The central and state GST would be levied on every transaction of supply of goods and services simultaneously. Conclusions:
(I) This new tax regime would benefit common man of country.
(II) There would be more clarity on state and central component.
Consider the given statements as true and decide which of the given conclusions can definitely be drawn from the given statements. Statements: People think that paying tax to government is a burden and waste. Hence, they avoid paying tax or don’t pay tax promptly. Conclusions: Government should create awareness among the people that paying tax helps to build nation. Tax should be increased so that more money is collected.