Post Utme Mountain Top University 2022 Economics Question 23

Practice objective / multiple choice question 23 from the 2022 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2022 Economics Objective / Multiple Choice
Question 23 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2022 • ECONOMICS • objective

The government of a country imposes a tax on a product to reduce its consumption. Which of the following is a correct effect of this tax?

Answer Options

Correct Answer A. The tax revenue collected by the government increases.
B. The price of the product increases, leading to a decrease in demand.
C. The tax revenue collected by the government decreases.
D. The tax has no effect on the demand for the product.
Correct Answer
A
Correct Option:
The tax revenue collected by the government increases.

About This Question

This is Post Utme Mountain Top University 2022 Economics Question 23. It is one of the objective questions from the 2022 Post Utme Mountain Top University Economics examination.

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