Post Utme Bells University 2024 Economics Question 30

Practice objective / multiple choice question 30 from the 2024 Post Utme Bells University Economics examination.

Post Utme Bells University 2024 Economics Objective / Multiple Choice
Question 30 POST_UTME_BELLS_UNIVERSITY • 2024 • ECONOMICS • objective

The government of a country imposes a tax on luxury goods to reduce consumption. If the demand for luxury goods is elastic, what will be the effect on government revenue?

Answer Options

A. Government revenue will increase
Correct Answer B. Government revenue will decrease
C. Government revenue will remain the same
D. Government revenue will fluctuate
Correct Answer
B
Correct Option:
Government revenue will decrease

About This Question

This is Post Utme Bells University 2024 Economics Question 30. It is one of the objective questions from the 2024 Post Utme Bells University Economics examination.

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