Post Utme Babcock University 2022 Economics Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2022 Economics Objective / Multiple Choice
Question 36 POST_UTME_BABCOCK_UNIVERSITY • 2022 • ECONOMICS • objective

A government imposes a tax on a commodity to reduce its consumption. However, the tax revenue is used to fund a program that increases the production of the same commodity. What is the effect of this policy on the overall supply of the commodity?

Answer Options

A. The supply of the commodity increases
Correct Answer B. The supply of the commodity decreases
C. The supply of the commodity remains unchanged
D. The supply of the commodity becomes perfectly inelastic
Correct Answer
B
Correct Option:
The supply of the commodity decreases

About This Question

This is Post Utme Babcock University 2022 Economics Question 36. It is one of the objective questions from the 2022 Post Utme Babcock University Economics examination.

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