Post Utme Summit University 2023 Economics Question 26

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

Post Utme Summit University 2023 Economics Objective / Multiple Choice
Question 26 POST_UTME_SUMMIT_UNIVERSITY • 2023 • ECONOMICS • objective

A government imposes a tax on a particular good, leading to a decrease in its demand. However, the tax revenue is used to fund a public project that benefits the consumers of the good. Analyze the impact of this tax on the welfare of the consumers.

Answer Options

A. The tax increases the welfare of the consumers.
Correct Answer B. The tax decreases the welfare of the consumers.
C. The tax has no impact on the welfare of the consumers.
D. The tax increases the welfare of the consumers, but only in the short run.
Correct Answer
B
Correct Option:
The tax decreases the welfare of the consumers.

About This Question

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

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