Post Utme Ims U 2022 Economics Question 11

Practice objective / multiple choice question 11 from the 2022 Post Utme Ims U Economics examination.

Post Utme Ims U 2022 Economics Objective / Multiple Choice
Question 11 POST_UTME_IMS_U • 2022 • ECONOMICS • objective

A government imposes a tax on imported goods to raise revenue. However, the tax also leads to a decrease in the quantity of imports. U\sing the concept of opportunity \cost, explain why the government's decision to impose the tax may not be the most efficient way to raise revenue.

Answer Options

A. The tax leads to a decrease in the quantity of imports, resulting in a loss of revenue.
Correct Answer B. The tax increases the opportunity \cost of importing goods, leading to a decrease in the quantity of imports.
C. The tax increases the price of imported goods, making them less competitive in the domestic market.
D. The tax leads to a decrease in the quantity of imports, resulting in a decrease in the opportunity \cost of importing goods.
Correct Answer
B
Correct Option:
The tax increases the opportunity \cost of importing goods, leading to a decrease in the quantity of imports.

About This Question

This is Post Utme Ims U 2022 Economics Question 11. It is one of the objective questions from the 2022 Post Utme Ims U Economics examination.

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