Post Utme Futa 2018 Economics Question 39

Practice objective / multiple choice question 39 from the 2018 Post Utme Futa Economics examination.

Post Utme Futa 2018 Economics Objective / Multiple Choice
Question 39 POST_UTME_FUTA • 2018 • ECONOMICS • objective

A government imposes a tax on a particular good, which leads to a decrease in its demand. The tax revenue is used to finance a public good that benefits all consumers of the good. What is the effect of this tax on the welfare of consumers?

Answer Options

A. Increased welfare
Correct Answer B. Decreased welfare
C. No effect on welfare
D. Increased welfare for some consumers and decreased welfare for others
Correct Answer
B
Correct Option:
Decreased welfare

About This Question

This is Post Utme Futa 2018 Economics Question 39. It is one of the objective questions from the 2018 Post Utme Futa Economics examination.

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