Post Utme Bells University 2017 Economics Question 37

Practice objective / multiple choice question 37 from the 2017 Post Utme Bells University Economics examination.

Post Utme Bells University 2017 Economics Objective / Multiple Choice
Question 37 POST_UTME_BELLS_UNIVERSITY • 2017 • ECONOMICS • objective

A government imposes a tax on a good, which leads to a decrease in the quantity demanded of the good. The tax revenue is used to finance a public good. Which of the following is a correct statement about the effect of the tax on the deadweight loss?

Answer Options

A. The deadweight loss increases.
Correct Answer B. The deadweight loss decreases.
C. The deadweight loss remains the same.
D. The deadweight loss becomes negative.
Correct Answer
B
Correct Option:
The deadweight loss decreases.

About This Question

This is Post Utme Bells University 2017 Economics Question 37. It is one of the objective questions from the 2017 Post Utme Bells University Economics examination.

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