Waec Model Questions Vol1 2024 Economics Question 4

Practice objective / multiple choice question 4 from the 2024 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2024 Economics Objective / Multiple Choice Hard Difficulty
Question 4 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

Country A had a GNP per capita of $2,000 in 2020. For the first three years (2020‑2023) the real growth rate of GNP per capita was 5 % per annum. From 2023 onward a development programme raised the growth rate to 7 % per annum. The programme costs $150 per capita each year starting in 2023 and is financed by a tax that reduces disposable income by 3 % of GNP per capita each year. Consumption is given by C = 0.6 × (disposable income). Calculate the net change in per‑capita consumption in 2025 relative to what it would have been without the programme. State the answer in dollars (negative sign indicates a decrease).

Answer Options

A. -85
B. -70
Correct Answer C. -79
D. -60
Correct Answer
C
Correct Option:
-79

About This Question

This is Waec Model Questions Vol1 2024 Economics Question 4. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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