Read the two statements and choose the correct option.
I. Production taxes are paid on a product per unit sold.
II. Product taxes, such as GST, are paid per unit of the product.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Production taxes, such as land revenue and stamp duty, do not depend on the volume produced. I is false.
Product taxes rise with each unit sold. II is true.

Ten questions from National Income Aggregates & GDP, at your own pace.

Ten questions from National Income Aggregates & GDP, at your own pace.

Read the two statements and choose the correct option.I. Production taxes are paid on a product per unit sold.II. Product taxes, such as GST, are paid per unit of the product.