Neco 2024 Civic Education Question 2
Practice objective / multiple choice question 2 from the 2024 Neco Civic Education examination.
A public official can accept a monetary bribe of amount \(X\) naira. The official must pay income tax of 30\% on any illicit income, and the probability of being detected is modeled by \(p = 0.05 + 0.001\\times\\frac{X}{1000}\). If detected, the official must pay a fine equal to twice the bribe amount. Assuming the official wants to maximise the expected net gain after tax and expected fine, and that \(X\) can be any multiple of 1,000 naira between 0 and 100,000 naira, what bribe amount maximises the expected net gain and what is that maximum expected net gain (in naira)?
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About This Question
This is Neco 2024 Civic Education Question 2. It is one of the objective questions from the 2024 Neco Civic Education examination.
Difficulty level: Hard .
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