Waec Model Questions Vol1 2019 Economics Question 24

Practice objective / multiple choice question 24 from the 2019 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 24 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

Country X exported 500,000 tonnes of cocoa at $2.00 per tonne and imported 300,000 tonnes of wheat at $1.50 per tonne. After a year, the world price of cocoa rises by 20% while the wheat price falls by 10%, with quantities unchanged. (a) Compute the original trade balance, (b) the new trade balance, and (c) the percentage change in the terms of trade.

Answer Options

A. (a) $500,000 surplus; (b) $750,000 surplus; (c) 30% improvement in terms of trade
Correct Answer B. (a) $550,000 surplus; (b) $795,000 surplus; (c) 33.33% improvement in terms of trade
C. (a) $550,000 surplus; (b) $800,000 surplus; (c) 35% improvement in terms of trade
D. (a) $600,000 surplus; (b) $795,000 surplus; (c) 33.33% improvement in terms of trade
Correct Answer
B
Correct Option:
(a) $550,000 surplus; (b) $795,000 surplus; (c) 33.33% improvement in terms of trade

About This Question

This is Waec Model Questions Vol1 2019 Economics Question 24. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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