Post Utme Achievers University 2020 Economics Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2020 Economics Objective / Multiple Choice
Question 16 POST_UTME_ACHIEVERS_UNIVERSITY • 2020 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase revenue from taxation. The policy aims to reduce the tax burden on low-income earners while increa\sing the tax rate on high-income earners. U\sing the concept of elasticity of taxation, explain why this policy is likely to increase revenue.

Answer Options

A. The policy will lead to a decrease in tax revenue due to the reduction in tax burden on low-income earners.
Correct Answer B. The policy will lead to an increase in tax revenue due to the increase in tax rate on high-income earners.
C. The policy will lead to a decrease in tax revenue due to the increase in tax rate on high-income earners.
D. The policy will lead to an increase in tax revenue due to the reduction in tax burden on low-income earners.
Correct Answer
B
Correct Option:
The policy will lead to an increase in tax revenue due to the increase in tax rate on high-income earners.

About This Question

This is Post Utme Achievers University 2020 Economics Question 16. It is one of the objective questions from the 2020 Post Utme Achievers University Economics examination.

View More Post Utme Achievers University 2020 Economics Questions More Post Utme Achievers University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support