Post Utme Lasu 2024 Economics Question 6

Practice objective / multiple choice question 6 from the 2024 Post Utme Lasu Economics examination.

Post Utme Lasu 2024 Economics Objective / Multiple Choice
Question 6 POST_UTME_LASU • 2024 • ECONOMICS • objective

The government of a country decides to implement a new tax policy to reduce income inequality. The tax policy involves a progressive tax system where higher income earners are taxed at a higher rate. However, the tax revenue generated from this policy is not enough to cover the \cost of implementing the policy. U\sing the concept of opportunity \cost, explain why the government may still decide to implement this policy.

Answer Options

Correct Answer A. The government may still decide to implement the policy because the benefits of reducing income inequality outweigh the \costs.
B. The government may still decide to implement the policy because the tax revenue generated from this policy is enough to cover the \cost of implementing the policy.
C. The government may still decide to implement the policy because the opportunity \cost of not implementing the policy is higher than the \cost of implementing it.
D. The government may still decide to implement the policy because the tax policy is a necessary evil to achieve economic growth.
Correct Answer
A
Correct Option:
The government may still decide to implement the policy because the benefits of reducing income inequality outweigh the \costs.

About This Question

This is Post Utme Lasu 2024 Economics Question 6. It is one of the objective questions from the 2024 Post Utme Lasu Economics examination.

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