Post Utme Mountain Top University 2023 Economics Question 26

Practice objective / multiple choice question 26 from the 2023 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2023 Economics Objective / Multiple Choice
Question 26 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2023 • ECONOMICS • objective

Consider a country with a mixed economy, where the government imposes a tax on imports to protect domestic industries. The tax is set at 15% of the import value. If the country imports $100 million worth of goods, and the tax revenue is used to fund public goods and services, what is the opportunity \cost of the tax revenue?

Answer Options

Correct Answer A. The opportunity \cost is the value of the goods that could have been imported with the tax revenue.
B. The opportunity \cost is the value of the public goods and services that could have been purchased with the tax revenue.
C. The opportunity \cost is the value of the tax revenue itself.
D. The opportunity \cost is the value of the domestic industries that could have been protected with the tax revenue.
Correct Answer
A
Correct Option:
The opportunity \cost is the value of the goods that could have been imported with the tax revenue.

About This Question

This is Post Utme Mountain Top University 2023 Economics Question 26. It is one of the objective questions from the 2023 Post Utme Mountain Top University Economics examination.

View More Post Utme Mountain Top University 2023 Economics Questions More Post Utme Mountain Top University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support