Selected MCQ

Current Question
A tax is reduced by 20% and consumption increases by 15%. What is the effect on revenue?
  • A. Increases by 8%
  • B. Decreases by 8%
  • C. No change
  • D. Increases by 10%
Correct Answer: B
Explanation:
Net effect = 0.8 × 1.15 = 0.92 → 8% decrease.
Related Question 1
A tax is reduced by 20% and consumption increases by 10%. What is the net effect?
  • A. 20%
  • B. 18%
  • C. 15%
  • D. 12%
Correct Answer: D
Explanation:
Net effect = 0.8 × 1.10 = 0.88 → 12% decrease.
Related Question 2
If the price decreases by 20% and consumption increases by 25%, what is the effect on expenditure?
  • A. No change
  • B. 5% increase
  • C. 5% decrease
  • D. 10% increase
Correct Answer: A
Explanation:
0.8 × 1.25 = 1 → no change.
Related Question 3
A person reduces consumption by 10% when the price increases by 20%. What is the effect on expenditure?
  • A. 8% increase
  • B. 8% decrease
  • C. No change
  • D. 10% increase
Correct Answer: A
Explanation:
1.2 × 0.9 = 1.08 → 8% increase.
Related Question 4
The price of petrol has increased by 25%. By what percent should consumption be reduced to keep expenditure constant?
  • A. 25%
  • B. 30%
  • C. 50%
  • D. 20%
Correct Answer: D
Explanation:
Reduction = 25/125 ×100 = 20%.
Related Question 5
The price of an item is increased by 15%. By what percent must consumption be reduced to keep expenditure constant?
  • A. 10 20/23 %
  • B. 13 1/23 %
  • C. 16 2/3 %
  • D. 15 %
Correct Answer: B
Explanation:
Reduction = 15/115 ×100 = 13 1/23%.