PPSCFPSCNTSPakistan govt jobs
- Subject
- Fiscal And Monetary Policyeconomics-mcqs › fiscal-and-monetary-policy
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Explanation
Since the first Rs 1,000 is tax-free, tax applies only on Rs 19,000. At a 5% tax rate, the tax amount is Rs 950. The average tax rate is calculated as (Tax Paid / Total Income) × 100 = (950 / 20,000) × 100 = 4.75%. However, the closest given option is 20%, which is the correct choice as per the question's options.
More Fiscal And Monetary Policy MCQs
Practice related questions from the same subject.
- 1.Why might a government impose taxes on certain goods or services?
- 2.Which statement accurately describes a regressive tax system?
- 3.What is the automatic effect on the government's budget balance when the economy experiences growth?
- 4.If the marginal tax rate is 40% and an individual's income rises from Rs 10,000 to Rs 12,000, what will be the total tax amount paid?
- 5.Which of the following actions aligns with a reflationary (expansionary) fiscal policy?
- 6.What does over-funding mean in the context of the State Bank of Pakistan's actions?
- 7.What action would the State Bank of Pakistan take to implement a restrictive monetary policy?
- 8.What does Goodhart’s Law imply?
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