Post Utme Caleb University 2021 Economics Question 1

Practice objective / multiple choice question 1 from the 2021 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2021 Economics Objective / Multiple Choice

Question 1 POST_UTME_CALEB_UNIVERSITY • 2021 • ECONOMICS • objective

A government imposes a tax on imports to reduce the trade deficit. However, the tax leads to a decrease in the quantity of imports. What is the opportunity \cost of this tax?

Answer Options

A. The decrease in the quantity of imports

B. The increase in the price of imports

Correct Answer C. The loss of consumer surplus

D. The loss of government revenue

Correct Answer

Correct Option:

The loss of consumer surplus

About This Question

This is Post Utme Caleb University 2021 Economics Question 1. It is one of the objective questions from the 2021 Post Utme Caleb University Economics examination.

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