Post Utme Aaua 2024 Economics Question 19

Practice objective / multiple choice question 19 from the 2024 Post Utme Aaua Economics examination.

Post Utme Aaua 2024 Economics Objective / Multiple Choice
Question 19 POST_UTME_AAUA • 2024 • ECONOMICS • objective

The government of a country decides to implement a policy of reducing the tax rate on a particular good. If the demand for the good is inelastic, what will be the effect on the government's revenue?

Answer Options

A. The government's revenue will increase
Correct Answer B. The government's revenue will decrease
C. The government's revenue will remain the same
D. The effect on the government's revenue is uncertain
Correct Answer
B
Correct Option:
The government's revenue will decrease

About This Question

This is Post Utme Aaua 2024 Economics Question 19. It is one of the objective questions from the 2024 Post Utme Aaua Economics examination.

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