Post Utme Abu 2018 Economics Question 3

Practice objective / multiple choice question 3 from the 2018 Post Utme Abu Economics examination.

Post Utme Abu 2018 Economics Objective / Multiple Choice

Question 3 POST_UTME_ABU • 2018 • ECONOMICS • objective

The government of a country imposes a tax on a particular good to reduce its consumption. Which of the following is a consequence of this tax?

A. The tax revenue collected by the government increases.

B. The tax revenue collected by the government decreases.

Correct Answer C. The price of the good increases, but the quantity consumed decreases.

D. The price of the good decreases, but the quantity consumed increases.

Correct Answer

Correct Option:

The price of the good increases, but the quantity consumed decreases.

This is Post Utme Abu 2018 Economics Question 3. It is one of the objective questions from the 2018 Post Utme Abu Economics examination.

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