Post Utme Coal City University 2018 Economics Question 33

Practice objective / multiple choice question 33 from the 2018 Post Utme Coal City University Economics examination.

Post Utme Coal City University 2018 Economics Objective / Multiple Choice
Question 33 POST_UTME_COAL_CITY_UNIVERSITY • 2018 • ECONOMICS • objective

The government of Nigeria is considering a new tax policy to increase revenue. The policy involves impo\sing a tax on all goods and services sold in the country. U\sing the concept of tax incidence, explain how the tax will affect the consumers and producers of goods and services.

Answer Options

Correct Answer A. The tax will increase the price of goods and services, and the consumers will bear the burden of the tax.
B. The tax will decrease the price of goods and services, and the producers will bear the burden of the tax.
C. The tax will have no effect on the price of goods and services, and the consumers and producers will share the burden of the tax.
D. The tax will increase the price of goods and services, and the producers will bear the burden of the tax.
Correct Answer
A
Correct Option:
The tax will increase the price of goods and services, and the consumers will bear the burden of the tax.

About This Question

This is Post Utme Coal City University 2018 Economics Question 33. It is one of the objective questions from the 2018 Post Utme Coal City University Economics examination.

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