Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › JNU › JNU SSS 2016 › Q9
1 markPublic Economics › Taxation: incidence and efficiency › Progressive, proportional and regressive taxesHardabout 2 min

JNU SSS 2016 Question 9: Taxation: incidence and efficiency

Suppose in an economy the amount of income tax (T)(T)(T) which has to be paid by an individual with income (Y)(Y)(Y) is given by the following relations : T=0T = 0T=0, if Y<25Y < 25Y<25 T=−25+5Y12T = -25 + 5Y^{\frac{1}{2}}T=−25+5Y21​, if Y≥25Y \geq 25Y≥25

The maximum rate of income tax which has to be paid by any individual in this economy is

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

Suppose in an economy the amount of income tax (T) which has to be paid by an individual with income (Y) is given by the following relations: T = 0, if Y < 25 T = -25 + 5Y^(1/2), if Y ≥ 25 The maximum rate of income tax which has to be paid by any individual in this economy is (A) not more than 20% (B) more than 20%, but not more than 30% (C) more than 30%, but not more than 40% (D) more than 40%

Also written as: Suppose in an economy the amount of income tax (T) which has to be paid by an individual with income (Y) is given by the following relations: T = 0, if Y < 25 T = -25 + 5Y^(1/2), if Y >= 25 The maximum rate of income tax which has to be paid by any individual in this economy is

Taxation: incidence and efficiency has come up 79 times in 7 exams since 2009.

What this question tests

This question is on Progressive, proportional and regressive taxes, part of Taxation: incidence and efficiency in Public Economics.

How the burden of a tax changes with income, measured by average and marginal tax rates.

TestStop has 13 past-paper questions on this subtopic; the nearest in year are below.

  • GATE 2023 · Q49An income tax system is considered as progressive if the average tax rate rises with income. Consider an…
Practise Taxation: incidence and efficiencyMore on Progressive, proportional and regressive taxes

Similar questions from other papers

  • CUET-PG 2026 · Q50Sequence the evolution of taxation principles in modern Economics. A. Ability to pay principle B. Benefit principle C. Optimal taxation theory D. Equity and efficiency…
  • IIT JAM 2026 · Q8The relationship between tax revenue and tax rate is represented by.
  • UGC-NET 2026 · Q43When product tax is imposed as a percentage of price it is referred as?
  • IIT JAM 2025 · Q28Tax buoyancy is defined as.
  • UGC-NET 2025 · Q12When public revenue increases by more than 1% for a 1% increase in GDP, it is known as:

Question from the JNU SSS 2016 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.