Post Utme Joseph Ayo Babalola University 2017 Economics Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2017 Economics Objective / Multiple Choice
Question 6 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2017 • ECONOMICS • objective

A government imposes a tax on a commodity to reduce its consumption. If the demand for the commodity is inelastic, what will be the effect on the government's revenue?

Answer Options

A. The government's revenue will increase.
Correct Answer B. The government's revenue will decrease.
C. The government's revenue will remain the same.
D. The effect on the government's revenue is uncertain.
Correct Answer
B
Correct Option:
The government's revenue will decrease.

About This Question

This is Post Utme Joseph Ayo Babalola University 2017 Economics Question 6. It is one of the objective questions from the 2017 Post Utme Joseph Ayo Babalola University Economics examination.

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