Post Utme Al Hikmah University 2025 Economics Question 6

Practice objective / multiple choice question 6 from the 2025 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2025 Economics Objective / Multiple Choice
Question 6 POST_UTME_AL-HIKMAH_UNIVERSITY • 2025 • ECONOMICS • objective

The government of a country has decided to implement a new tax policy aimed at reducing income inequality. The policy involves a progressive tax system where the tax rate increases as the income level increases. However, the policy also includes a tax exemption for low-income earners. Which of the following is a potential consequence of this policy?

Answer Options

A. Increased tax revenue for the government
B. Reduced income inequality among citizens
Correct Answer C. Increased tax burden on low-income earners
D. Decreased economic growth due to higher tax rates
Correct Answer
C
Correct Option:
Increased tax burden on low-income earners

About This Question

This is Post Utme Al Hikmah University 2025 Economics Question 6. It is one of the objective questions from the 2025 Post Utme Al Hikmah University Economics examination.

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