JAMB Economics 2023 Objective — Question 8
Question 8 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2023 Objective paper, with the correct answer and a full explanation.
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In order to raise more revenue from taxes, government should tax goods that are
- A. Plastic
- B. perfectly elastic
- C. perfectly inelasticCorrect
- D. unitary elastic
Explanation
Taxing a perfectly inelastic good does not reduce the quantity purchased when price rises, so government revenue from the tax is maximised.
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