Post Utme Eksu 2019 Economics Question 18

Practice objective / multiple choice question 18 from the 2019 Post Utme Eksu Economics examination.

Post Utme Eksu 2019 Economics Objective / Multiple Choice
Question 18 POST_UTME_EKSU • 2019 • ECONOMICS • objective

The Nigerian government plans to invest in industrialization by providing tax incentives to manufacturers. However, some critics argue that this will lead to a decrease in government revenue. What is the likely effect of tax incentives on the government's revenue?

Answer Options

A. The government's revenue will increase, as manufacturers will pay more taxes.
Correct Answer B. The government's revenue will decrease, as manufacturers will pay fewer taxes.
C. The government's revenue will remain unchanged, as the tax incentives will be offset by increased economic activity.
D. The government's revenue will increase, as manufacturers will invest more in the economy.
Correct Answer
B
Correct Option:
The government's revenue will decrease, as manufacturers will pay fewer taxes.

About This Question

This is Post Utme Eksu 2019 Economics Question 18. It is one of the objective questions from the 2019 Post Utme Eksu Economics examination.

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