Neco Model Questions Vol1 2020 Economics Question 26
Practice objective / multiple choice question 26 from the 2020 Neco Model Questions Vol1 Economics examination.
The government imposes an income tax with the following brackets: the first \(\text{₦}200{,}000\) of taxable income is taxed at \(5\%\), the next \(\text{₦}300{,}000\) at \(10\%\), and any amount above \(\text{₦}500{,}000\) at \(15\%\). The average taxable income of \(1{,}000\) taxpayers is \(\text{₦}1{,}200{,}000\). Apart from income tax, the government collects other revenues of \(\text{₦}30\) billion and its total expenditure is \(\text{₦}150\) billion. If the country's GDP is \(\text{₦}500\) billion, what is the budget deficit expressed as a percentage of GDP (rounded to one decimal place)?
Answer Options
About This Question
This is Neco Model Questions Vol1 2020 Economics Question 26. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.