Post Utme Unn 2021 Economics Question 25

Practice objective / multiple choice question 25 from the 2021 Post Utme Unn Economics examination.

Post Utme Unn 2021 Economics Objective / Multiple Choice
Question 25 POST_UTME_UNN • 2021 • ECONOMICS • objective

Consider a public finance problem where the government is considering a tax on a particular good. If the tax is imposed, the demand for the good will decrease by 20%. If the tax is not imposed, the demand for the good will increase by 10%. What is the effect of the tax on the government's revenue?

Answer Options

A. Increase in revenue
Correct Answer B. Decrease in revenue
C. No change in revenue
D. Uncertain effect on revenue
Correct Answer
B
Correct Option:
Decrease in revenue

About This Question

This is Post Utme Unn 2021 Economics Question 25. It is one of the objective questions from the 2021 Post Utme Unn Economics examination.

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