Post Utme Christopher University 2018 Economics Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2018 Economics Objective / Multiple Choice
Question 1 POST_UTME_CHRISTOPHER_UNIVERSITY • 2018 • ECONOMICS • objective

Consider a country with a mixed economy, where the government plays a significant role in the production and distribution of goods and services. U\sing the concept of opportunity \cost, explain why the government might impose a tax on a particular industry.

Answer Options

A. The tax is imposed to reduce the opportunity \cost of producing goods and services in the industry.
B. The tax is imposed to increase the opportunity \cost of producing goods and services in the industry.
Correct Answer C. The tax is imposed to redistribute income from the industry to other sectors of the economy.
D. The tax is imposed to reduce the overall level of economic activity in the industry.
Correct Answer
C
Correct Option:
The tax is imposed to redistribute income from the industry to other sectors of the economy.

About This Question

This is Post Utme Christopher University 2018 Economics Question 1. It is one of the objective questions from the 2018 Post Utme Christopher University Economics examination.

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