Neco Model Questions Vol1 2020 Government Question 26
Practice objective / multiple choice question 26 from the 2020 Neco Model Questions Vol1 Government examination.
Two ministries, A and B, are funded from a common budget of \(\text{₦}210\) million. Ministry A currently spends \(\text{₦}120\) million to deliver 3 000 services, while Ministry B spends \(\text{₦}90\) million to deliver 1 500 services. The government wants both ministries to increase their output by 20 % without increasing the total budget. Ministry A can improve its efficiency, reducing its cost per service by 10 %. Assuming Ministry B's cost per service remains unchanged, what percentage reduction in Ministry B's budget is required to meet the new output targets while keeping the total budget at \(\text{₦}210\) million?
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About This Question
This is Neco Model Questions Vol1 2020 Government Question 26. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Government examination.
Difficulty level: Hard .
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