Post Utme Igbinedion University 2018 Economics Question 37

Practice objective / multiple choice question 37 from the 2018 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2018 Economics Objective / Multiple Choice

Question 37 POST_UTME_IGBINEDION_UNIVERSITY • 2018 • ECONOMICS • objective

A government is considering the introduction of a new tax on luxury goods. U\sing the concept of public finance, explain why the government might choose to implement the tax.

Answer Options

Correct Answer A. The government can use the concept of public finance to justify implementing the tax as a means of increa\sing government revenue and reducing the budget deficit.

B. The government can use the concept of public finance to justify implementing the tax as a means of reducing income inequality and poverty.

C. The government can use the concept of public finance to justify implementing the tax as a means of improving the efficiency of the tax system and reducing tax evasion.

D. The government can use the concept of public finance to justify implementing the tax as a means of increa\sing the government's ability to provide public goods and services.

Correct Answer

Correct Option:

The government can use the concept of public finance to justify implementing the tax as a means of increa\sing government revenue and reducing the budget deficit.

About This Question

This is Post Utme Igbinedion University 2018 Economics Question 37. It is one of the objective questions from the 2018 Post Utme Igbinedion University Economics examination.

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