Gce Model Questions Vol1 2017 Civic Education Question 5

Practice objective / multiple choice question 5 from the 2017 Gce Model Questions Vol1 Civic Education examination.

Gce Model Questions Vol1 2017 Civic Education Objective / Multiple Choice Hard Difficulty
Question 5 GCE_MODEL_QUESTIONS_VOL1 • 2017 • CIVIC_EDUCATION • objective

A public officer receives a bribe of \(\text{₦}100{,}000\). If the officer invests the money in a scheme that yields a 15 % annual return, the profit is subject to a 10 % income tax and, if the bribery is discovered, a penalty equal to 5 % of the total amount (principal + profit). Assume the probability of being caught within the year is 0.2. (a) What is the expected net profit after one year, taking into account tax and the expected penalty? (b) The officer's annual salary is \(\text{₦}150{,}000\). Compare the expected net profit with the salary and state whether the expected financial gain from the bribe exceeds the salary.

Answer Options

A. a) Expected net profit = ₦13,500. b) The expected profit is slightly less than the salary of ₦150,000, so it does not exceed the salary.
B. a) Expected net profit = ₦10,200. b) The expected profit is far less than the salary of ₦150,000, so it does not exceed the salary.
C. a) Expected net profit = ₦12,350. b) The expected profit exceeds the salary of ₦150,000, so it does exceed the salary.
Correct Answer D. a) Expected net profit = ₦12,350. b) The expected profit is much less than the salary of ₦150,000, so it does not exceed the salary.
Correct Answer
D
Correct Option:
a) Expected net profit = ₦12,350. b) The expected profit is much less than the salary of ₦150,000, so it does not exceed the salary.

About This Question

This is Gce Model Questions Vol1 2017 Civic Education Question 5. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Civic Education examination.

Difficulty level: Hard .

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