12th Class Economics Liberalisation, Privatisation and Globalisation Question Bank MCQs - Liberalisation, Privatisation and Globalisation

  • question_answer
    The main reason for reduction in taxes and simplification of tax procedure since 1991 is

    A) high tax rates act as a deterrent to savings and is a major reason for tax evasion

    B) income of the people post 1991 have fallen continuously and so does the tax rates

    C) high tax rates imply higher disposable income and thus lower level of consumption

    D) All of the above

    Correct Answer: A

    Solution :

    High tax rates imply lower disposable income and thus lower level of savings and consumption.


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