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Topic Tax incidence
Asked 2 times across 2 UPSC exams over 6 years (2018–2024), peaking in 2024.
Key insights
- Most tested in CAPF — 1 of 2 PYQs
- Most asked in 2024
- Recurs across 2 years (2018–2024)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CDS 2018 → CAPF 2024
How the concept evolved
Rising — more than half its appearances (2 of 2) are since 2016.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CAPF2024
Consider the following statements
- Burden of a tax on a commodity is independent of who (buyer or seller) it is explicitly imposed upon
- Burden of a tax on a commodity depends on the slope of the demand and supply curves
Which of the statements given above is/are correct?
- A 1 only
- B 2 only
- C Both 1 and 2 ✓
- D Neither 1 nor 2
✓ Correct answer: (C)
Economy › Macroeconomics
CDS2018
Consider the following statements about impact of tax
- A tax is shifted forward to consumers if the demand is inelastic relative to supply
- A tax is shifted backward to producers if the supply is relatively more inelastic than demand
Which of the statements given above is/are correct?
- A 1 only
- B 2 only
- C Both 1 and 2 ✓
- D Neither 1 nor 2
✓ Correct answer: (C)
Economy › Public Finance & Budget
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