Post Utme Veritas University 2024 Economics Question 1

Practice objective / multiple choice question 1 from the 2024 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2024 Economics Objective / Multiple Choice
Question 1 POST_UTME_VERITAS_UNIVERSITY • 2024 • ECONOMICS • objective

The government of a country decides to implement a new tax on luxury goods to reduce income inequality. However, the tax is not progressive, meaning it is levied at the same rate on all luxury goods. Which of the following best describes the effect of this tax on the economy?

Answer Options

A. The tax will increase government revenue and reduce income inequality.
B. The tax will reduce government revenue and increase income inequality.
Correct Answer C. The tax will have no effect on government revenue or income inequality.
D. The tax will increase government revenue but have no effect on income inequality.
Correct Answer
C
Correct Option:
The tax will have no effect on government revenue or income inequality.

About This Question

This is Post Utme Veritas University 2024 Economics Question 1. It is one of the objective questions from the 2024 Post Utme Veritas University Economics examination.

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