WAEC Economics 2015 Objective — Question 29
Question 29 of 50 from the West African Examinations Council (WAEC) Economics 2015 Objective paper, with the correct answer and a full explanation.
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Ten bags of wheat bought for $50 by a flour miller were sold for $65. What is the Value Added Tax payable by the flour miller if the tax rate is 5%?
- A. $7.50
- B. $3.25
- C. $2.25
- D. $0.75Correct
Explanation
Value added = value of output − value of input = 65−50 = $15. VAT = 5% of $15 = $0.75.
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