Post Utme Bowen University 2022 Economics Question 40

Practice objective / multiple choice question 40 from the 2022 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2022 Economics Objective / Multiple Choice
Question 40 POST_UTME_BOWEN_UNIVERSITY • 2022 • ECONOMICS • objective

A government imposes a tax on a good, cau\sing the supply curve to shift to the left. U\sing the concept of consumer and producer surplus, derive an expression for the deadweight loss caused by the tax.

Answer Options

Correct Answer A. \Delta CS = \frac{1}{2} \times \( P - MC \) \times Q
B. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q - T \)
C. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q + T \)
D. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q - T \)
Correct Answer
A
Correct Option:
\Delta CS = \frac{1}{2} \times \( P - MC \) \times Q

About This Question

This is Post Utme Bowen University 2022 Economics Question 40. It is one of the objective questions from the 2022 Post Utme Bowen University Economics examination.

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