Thursday, 19 May 2016

Cima C04 Exam Question No 54

Question No 54:

The economic welfare case for governments increasing taxes on petrol to raise its real price is that?

A.
Oil is a scarce resource.
B.
It would reduce the imports of oil.
C.
There is a large demand for petrol.
D.
Petrol consumption involves external social costs.

Answer: D

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