Tax incidence and its effects - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2019

A demand which gives rise to the reverse of the law of demand is__________

A. Derived demand
B. Joint demand
C. Abnormal demand
D. Composite demand

Question 2:

• JAMB 2015

The tax levied on locally produced goods is

A. Import duty
B. Excise duty
C. Company tax
D. Value added tax

Question 3:

• JAMB 1985

Under normal circumstances a producer will bear the entire burden of taxation on his output if the?

A. Demand for his product is completely elastic
B. Supply of his goods is more elastic than the demand
C. Demand for his product is more elastic than the supply
D. Production of his commodities is subject to diminishing returns
E. Production of his commodities is subject to increase returns to scale

Question 4:

• JAMB 1986

What fundamentally determines how much a consumer spends in a producer's shop?

A. Individual's propensity to consume
B. Level of his taxation
C. Level of his income
D. Individual's taste or fashion

Question 5:

• JAMB 1990

A tax on a commodity whose supply is perfectly inelastic is?

A. Shifted completely on the consumer
B. Completely borne by the supplier
C. Dividend in the ratio 60;40 between the consumer and the supplier
D. Divided half-and-half between the producer and the consumer