Post Utme Unilorin 2018 Economics Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2018 Economics Objective / Multiple Choice
Question 6 POST_UTME_UNILORIN • 2018 • ECONOMICS • objective

A government imposes a tax on a commodity to reduce its consumption. If the demand for the commodity is inelastic, what will be the effect on the government's revenue?

Answer Options

A. The government's revenue will increase.
Correct Answer B. The government's revenue will decrease.
C. The government's revenue will remain the same.
D. The effect on the government's revenue is uncertain.
Correct Answer
B
Correct Option:
The government's revenue will decrease.

About This Question

This is Post Utme Unilorin 2018 Economics Question 6. It is one of the objective questions from the 2018 Post Utme Unilorin Economics examination.

View More Post Utme Unilorin 2018 Economics Questions More Post Utme Unilorin 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