Question

Say that Malaysia has a workforce of 11,071,016, with an average yearly salary of (equivalent US dollars) $15,196. How much more revenue will the Malaysian government gather if it sets the income tax at 17% than if it sets the income tax at 8%, to the nearest million dollars?
a.
$21,059 million
b.
$16,824 million
c.
$15,141 million
d.
$13,459 million


Please select the best answer from the choices provided

A
B
C
D

Answer 1

C

Extra revenue = 11,071,016 × $15,196 × (0.17 − 0.08) = 11,071,016 × 15,196 × 0.09 ≈ $15,141,164,322 ≈ $15,141 million.