Post Utme Babcock University 2023 Economics Question 6

Practice objective / multiple choice question 6 from the 2023 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2023 Economics Objective / Multiple Choice
Question 6 POST_UTME_BABCOCK_UNIVERSITY • 2023 • ECONOMICS • objective

A government imposes a tax on imported goods to raise revenue. However, the tax also leads to a decrease in the quantity of goods imported. U\sing the concept of opportunity \cost, explain why the government's decision to impose the tax may not be optimal.

Answer Options

A. The tax leads to a decrease in the quantity of goods imported, resulting in a loss of consumer surplus.
B. The tax increases the price of imported goods, leading to a decrease in the quantity demanded.
C. The tax reduces the opportunity \cost of importing goods, making it more attractive to consumers.
Correct Answer D. The tax increases the revenue of the government, but at the \cost of a decrease in the quantity of goods imported.
Correct Answer
D
Correct Option:
The tax increases the revenue of the government, but at the \cost of a decrease in the quantity of goods imported.

About This Question

This is Post Utme Babcock University 2023 Economics Question 6. It is one of the objective questions from the 2023 Post Utme Babcock University Economics examination.

View More Post Utme Babcock University 2023 Economics Questions More Post Utme Babcock 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