Question
12. In March 2000 the Ministry of Trade and Industry in Singapore stated that Gross Domestic
Product grew by 5.4 % in the previous year. This produced higher revenues from taxation and
resulted in a budget surplus.
What may be concluded from this statement?
A The change in Gross Domestic Product was caused by a change in taxation.
B The government had increased the rate of taxation and the expenditure on its services.
C The ational income of the country had increased and so more was paid in taxes.
D There had been economic growth because the government had reduced its expenditure and
budgeted for a surplus.
ehaeabalda Aada tad n ench otl
Answer
C The national income of the country had increased and so more was paid in taxes.