UPSC Economic Questions and Answers

UPSC Economic Questions and Answers

The civil services exam is one of the toughest examinations conducted in the country, and economy questions constitute a major of the two written phases of the examination. At BYJU’S we bring to you a compiled list of Economy questions along with answers that are suitable from the prelims and mains perspective.

These answers have been provided by UPSC experts for the candidate’s assistance, without any indirect or ambiguous information. Questions based on sustainable development, GDP, economic growth, taxation, etc. are included in the economy syllabus and the list of questions provided below will focus on the same.

The compiled list of questions given below comes with straightforward and crisp answers, with the IAS mains General Studies-III paper syllabus as the focal point. Aspirants can refer to these questions and answers and familiarize themselves with the depth of important economic topics as per the UPSC Syllabus.

The taxes have to be filed for every financial year, within the due date given by the tax authorities, if not, there will be a penalty and a fine...
As per law, three months imprisonment is the minimum sentence for tax evasion, and 7 years imprisonment is the maximum sentence for tax evasion....
The final burden of tax is known as tax incidence and the initial burden of tax is known as tax impact. Tax incidence is upon the person who...
The incidence of tax is dependent on the price elasticity of demand and supply. You can read about the Taxation in India - Direct taxes &...
Absolute tax incidence determines the incidence of a tax assuming that no other tax would be levied in its absence. You can read about the...
When the impact of taxation and tax incidence is upon the same entity, then this is known as direct tax incidence. You can read about the...
The three criteria for effective taxes are simplicity, efficiency, and equity. The other important criteria that must be fulfilled for having...
A person or entity who actually bears the burden of tax is known as the effective incidence of tax. A person or entity which is obliged to pay...
If all the income of non-resident Indians arises or accrues from outside India then it would not be taxable in India. You can read about the...
Relative price elasticity of demand and supply is the factor determining the incidence of taxation. You can read about the Goods and Services Tax...
The person who pays the tax is known as impact incidence. Shifting of taxation means shifting the burden of tax by the taxpayer to another...
There are 4 different theories of tax shifting incidence. The theories are Musgrave’s approach, demand and supply theory of incidence, diffusion...
Tax evasion is an illegal activity. It involves avoiding payment of liable taxes by companies or individuals through illegal means. As per laws,...
Some of the examples of tax evasion are showing false records, hiding income, declaration of less income or profits than the amount actually...
As per law, three months imprisonment is the minimum sentence for tax evasion, and 7 years imprisonment is the maximum sentence for tax evasion ....
There are two types of tax incidence, they are economic incidence and statutory incidence. Economic incidence of tax is also known as the final...
The tax incidence on the sellers is calculated by finding the difference between the initial equilibrium price and the price that the sellers...
Reducing tax rates on individuals can help them in increasing their savings, thereby helping them to spend more, which in turn can help in...
If demand is more elastic than supply, the burden of tax will fall on producers. You can read about the Tax Administration Reform Commission...
Marginal tax rate was reduced after the 1991-92 tax reforms. During this reform, the marginal tax rate was brought down to 40%. In 1996-97, there...