Waec Model Questions Vol1 2022 Economics Question 21

Practice objective / multiple choice question 21 from the 2022 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 21 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

Country X exports 2 million tonnes of cocoa at $1,200 per tonne and imports 1.5 million tonnes of wheat at $800 per tonne. The government imposes a 10 % export tax on cocoa and a 5 % import tariff on wheat. Calculate the percentage change in the country's terms of trade (export price ÷ import price) after the taxes.

Answer Options

Correct Answer A. Decrease of 14.29 %
B. Decrease of 12.50 %
C. Increase of 14.29 %
D. Decrease of 16.67 %
Correct Answer
A
Correct Option:
Decrease of 14.29 %

About This Question

This is Waec Model Questions Vol1 2022 Economics Question 21. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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