Question 1
The following data shows the budget of a hypothetical country in 2006. Study the data and answer the questions that follow:
Revenue |
[$ millions] |
Company tax |
240 |
Expenditure |
[$ millions] |
Construction of roads |
100 |
(a) How much revenue was realized from:
(i) direct taxes;
(ii) indirect taxes?
(i) recurrent expenditure;
(ii) capital expenditure.
(c) What percentage of total revenue was collected as indirect tax?
(d) State two examples of non-tax revenue.
(e) What was the budget surplus or deficit? Explain your answer.
This is one of the data response question and it attracted a lot of candidates who performed fairly above average. The question required the candidates to identify items on the revenue and expenditure sides of a hypothetical budget, state two examples of non-tax revenue and determine whether the budget was deficit or a surplus budget in the (d) and (e) parts of the question respectively. Few of the candidates could correctly classify the items under the appropriate headings in the (a) and (b) parts of the question. This prevented them from obtaining the maximum mark.
The candidates were expected to provide the following answers to score higher marks.