A12.80
B8.00
C13.60
D2.70
Answer:
B. 8.00
Read Explanation:
Understanding Revenue Receipts in Economics
Key Concepts:
Revenue Deficit: This represents the difference between the government's total revenue receipts and its total revenue expenditure. A negative revenue deficit implies that revenue expenditure exceeds revenue receipts.
Revenue Expenditure: This includes all expenditures of the government that do not result in the creation of assets. Examples include salaries, interest payments, and subsidies.
Revenue Receipts: These are the receipts of the government that do not create a liability or result in the sale of assets. They primarily comprise tax revenue and non-tax revenue.
GDP (Gross Domestic Product): The total monetary value of all the finished goods and services produced within a country's borders in a specific time period.
Calculation of Revenue Receipts:
The relationship between these components can be expressed as:
Revenue Deficit = Revenue Expenditure - Revenue Receipts
To find the Revenue Receipts, we can rearrange the formula:
Revenue Receipts = Revenue Expenditure - Revenue Deficit
Applying the Given Data:
Revenue Deficit = 2.80% of GDP
Revenue Expenditure = 10.80% of GDP
Therefore:
Revenue Receipts = 10.80% of GDP - 2.80% of GDP
Revenue Receipts = 8.00% of GDP