Post Utme Summit University 2021 Economics Question 32

Practice objective / multiple choice question 32 from the 2021 Post Utme Summit University Economics examination.

Post Utme Summit University 2021 Economics Objective / Multiple Choice

Question 32 POST_UTME_SUMMIT_UNIVERSITY • 2021 • ECONOMICS • objective

A government imposes a tax on a firm's output. If the firm's supply curve is upward sloping, what is the effect of the tax on the firm's output?

Answer Options

A. The tax increases the firm's output.

Correct Answer B. The tax decreases the firm's output.

C. The tax has no effect on the firm's output.

D. The tax increases the firm's output, but only if the tax rate is high.

Correct Answer

Correct Option:

The tax decreases the firm's output.

About This Question

This is Post Utme Summit University 2021 Economics Question 32. It is one of the objective questions from the 2021 Post Utme Summit University Economics examination.

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