A decrease in tax to GDP ratio of a country indicates which of the following? 1. Slowing economic growth rates 2. Less equitable distribution of national income Select the correct answer using the code given below.

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Submitted by examrobotsa on

Q: 54 (IAS/2015)
A decrease in tax to GDP ratio of a country indicates which of the following?
1. Slowing economic growth rates
2. Less equitable distribution of national income
Select the correct answer using the code given below.

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,73,212,73,68,95,49

keywords: 

{'gdp ratio': [0, 0, 0, 1], 'economic growth rates': [0, 0, 0, 1], 'decrease': [0, 0, 0, 1], 'national income': [0, 2, 2, 4], 'tax': [0, 0, 0, 1]}

You are correct. A decrease in the tax-to-GDP ratio of a country typically indicates slowing economic growth rates. A lower tax-to-GDP ratio means that the government is collecting a smaller share of the overall economic output in the form of taxes, which can be an indication of a slowdown in economic activity. It does not necessarily imply anything about the equitable distribution of national income. So, the correct answer is 1 only.

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