Post Utme Christopher University 2023 Economics Question 34

Practice objective / multiple choice question 34 from the 2023 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2023 Economics Objective / Multiple Choice
Question 34 POST_UTME_CHRISTOPHER_UNIVERSITY • 2023 • ECONOMICS • objective

Suppose the government of Nigeria imposes a 10% tax on all imports. U\sing the concept of opportunity \cost, explain how this tax affects the consumer's budget constraint.

Answer Options

Correct Answer A. The tax increases the opportunity \cost of importing goods, leading to a decrease in the quantity demanded.
B. The tax decreases the opportunity \cost of importing goods, leading to an increase in the quantity demanded.
C. The tax has no effect on the opportunity \cost of importing goods.
D. The tax increases the opportunity \cost of importing goods, leading to an increase in the quantity demanded.
Correct Answer
A
Correct Option:
The tax increases the opportunity \cost of importing goods, leading to a decrease in the quantity demanded.

About This Question

This is Post Utme Christopher University 2023 Economics Question 34. It is one of the objective questions from the 2023 Post Utme Christopher University Economics examination.

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