Neco 2017 Civic Education Question 15

Practice objective / multiple choice question 15 from the 2017 Neco Civic Education examination.

Neco 2017 Civic Education Objective / Multiple Choice Hard Difficulty
Question 15 NECO • 2017 • CIVIC_EDUCATION • objective

An official can receive a bribe of N500,000 to award a public contract. The probability of being caught is 0.2, and if caught the official must pay a fine equal to five times the bribe amount. Additionally, awarding the contract brings a promotion valued at N300,000, which is independent of the bribe and is received with certainty. Calculate the expected monetary gain for the official if he accepts the bribe, and state whether accepting the bribe is financially rational.

Answer Options

A. Expected gain = N-200,000; therefore, from a purely monetary standpoint, accepting the bribe is not financially rational.
Correct Answer B. Expected gain = N300,000; therefore, from a purely monetary standpoint, accepting the bribe is financially rational.
C. Expected gain = N800,000; therefore, from a purely monetary standpoint, accepting the bribe is financially rational.
D. Expected gain = N500,000; therefore, from a purely monetary standpoint, accepting the bribe is financially rational.
Correct Answer
B
Correct Option:
Expected gain = N300,000; therefore, from a purely monetary standpoint, accepting the bribe is financially rational.

About This Question

This is Neco 2017 Civic Education Question 15. It is one of the objective questions from the 2017 Neco Civic Education examination.

Difficulty level: Hard .

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