Post Utme Achievers University 2021 Economics Question 26

Practice objective / multiple choice question 26 from the 2021 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2021 Economics Objective / Multiple Choice

Question 26 POST_UTME_ACHIEVERS_UNIVERSITY • 2021 • ECONOMICS • objective

A government imposes a tax on a good that is inelastic in demand. 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 government's revenue will increase, but at a decrea\sing rate

Correct Answer

Correct Option:

The government's revenue will decrease

About This Question

This is Post Utme Achievers University 2021 Economics Question 26. It is one of the objective questions from the 2021 Post Utme Achievers University Economics examination.

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