Post Utme Oau 2025 Economics Question 36

Practice objective / multiple choice question 36 from the 2025 Post Utme Oau Economics examination.

Post Utme Oau 2025 Economics Objective / Multiple Choice
Question 36 POST_UTME_OAU • 2025 • ECONOMICS • objective

The government of a country imposes a tax on imports to raise revenue. However, this 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 optimal.

Answer Options

Correct Answer A. The tax increases the opportunity \cost of importing goods, leading to a decrease in the quantity of imports.
B. The tax reduces the opportunity \cost of importing goods, leading to an increase in the quantity of imports.
C. The tax has no effect on the opportunity \cost of importing goods.
D. The tax increases the opportunity \cost of importing goods, leading to an increase in the quantity of imports.
Correct Answer
A
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 Oau 2025 Economics Question 36. It is one of the objective questions from the 2025 Post Utme Oau Economics examination.

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