Government Revenue and Expenditure

12 Grade 6 Social Studies questions on Government Revenue and Expenditure, with worked marking schemes. 12 questions are available on this topic in full.

1. Question 1

   1 mark

   Money that the government collects from its people and uses to run the country is called government:

   A. Revenue

   B. Expenditure

   C. Loss

   D. Donation

   (1 mark)

   Marking scheme for this question

   Create a free account to see it

2. Question 2

   1 mark

   Which of the following is a source of government revenue OTHER than taxes?

   A. Buying army equipment

   B. Payment of civil servants' salaries

   C. Fees charged for licences and permits

   D. Building of public hospitals

   (1 mark)

   Marking scheme for this question

   Create a free account to see it

3. Question 3

   3 marks

   State three sources of government revenue in Kenya.

   (3 marks)

   Marking scheme

   Any three (1 each): taxes (income tax, VAT, customs/excise duty); licences and permits fees; fines and penalties; charges for services (e.g. passports, ID); grants and donations from other countries/organisations; loans; rent from government property; profits from state corporations. Accept other valid sources.

4. Question 4

   4 marks

   Explain two ways in which the government uses the money it collects (government expenditure).

   (4 marks)

   Marking scheme

   Any two x 2 marks. Providing education (1) e.g. building schools and paying teachers (1); providing health care (1) building hospitals/paying nurses (1); maintaining security (1) paying police and the army (1); building infrastructure (1) roads, water, electricity (1); paying salaries of civil servants (1). Accept other valid points.

5. Question 5

   4 marks

   A citizen argues that people should not pay taxes. Give two reasons you would use to convince the citizen that paying taxes is beneficial to the country.

   (4 marks)

   Marking scheme

   Any two x 2 marks. Taxes provide funds for public services (1) such as free education and health care that everyone uses (1); taxes build and repair roads, water and electricity (1) improving people's lives (1); taxes pay for security (1) keeping citizens safe (1); taxes help develop the country (1) creating jobs and growth (1). Accept other valid, well-explained reasons.

6. Question 6

   1 mark

   A worker earns a salary every month and part of it is deducted and paid to the government. This deduction is an example of:

   A. Business licence

   B. Customs duty

   C. Court fine

   D. Income tax

   (1 mark)

   Marking scheme for this question

   Create a free account to see it

7. Question 7

   1 mark

   Which government body is responsible for collecting taxes in Kenya?

   A. Kenya Revenue Authority (KRA)

   B. Kenya Power

   C. Central Bank of Kenya

   D. Kenya Wildlife Service (KWS)

   (1 mark)

   Marking scheme for this question

   Create a free account to see it

8. Question 8

   4 marks

   Define the following terms as used in government finance:

   (a) Revenue.

   (b) Expenditure.

   (4 marks)

   Marking scheme for this question

   Create a free account to see it

9. Question 9

   1 mark

   The government spends a large part of its money on education. This spending mainly helps the country by:

   A. Reducing the number of schools

   B. Ending all businesses

   C. Producing an educated and skilled population

   D. Increasing poverty

   (1 mark)

   Marking scheme for this question

   Create a free account to see it

10. Question 10

    1 mark

    Which of the following is an example of government EXPENDITURE?

    A. Charging fees for a passport

    B. Fining a careless driver

    C. Paying salaries of teachers and nurses

    D. Collecting taxes from traders

    (1 mark)

    Marking scheme for this question

    Create a free account to see it

11. Question 11

    1 mark

    When a trader adds a tax to the price of goods sold in a shop, the tax charged on the goods is known as:

    A. Value Added Tax (VAT)

    B. Income tax

    C. Land rates

    D. Customs duty

    (1 mark)

    Marking scheme for this question

    Create a free account to see it

12. Question 12

    4 marks

    (a) Name the authority that collects taxes in Kenya.

    (b) Give two reasons why paying taxes is important.

    (4 marks)

    Marking scheme for this question

    Create a free account to see it

13. 9 more marking schemes are on this page. A free account opens all of them, and lets you build your own paper on the topics you have actually taught, laid out in KNEC format with its full marking scheme.

    Create a free account

More Grade 6 Social Studies topics