Neco 2025 Economics Question 11
Practice objective / multiple choice question 11 from the 2025 Neco Economics examination.
Government collects income tax using the following progressive schedule: \(10\%\) on the first \(\text{₦}200{,}000\) of income, \(20\%\) on the next \(\text{₦}300{,}000\) and \(30\%\) on any income above \(\text{₦}500{,}000\). From a particular sector the total tax revenue is \(\text{₦}48\) million and the sector employs 12,000 workers. The government now plans to raise an additional uniform tax of \(5\%\) on all incomes to fund a \(15\%\) increase in public spending. Assuming the average income of workers in the sector remains unchanged, what will be the average after‑tax income per worker after the new tax is applied?
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About This Question
This is Neco 2025 Economics Question 11. It is one of the objective questions from the 2025 Neco Economics examination.
Difficulty level: Medium .
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