Waec Model Questions Vol1 2025 Economics Question 8

Practice objective / multiple choice question 8 from the 2025 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2025 Economics Objective / Multiple Choice Hard Difficulty
Question 8 WAEC_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

Country A has a GNP per capita of $1,200 and a constant annual growth rate of 5 %. The national poverty line is $1,500.\n(a) Assuming the growth rate remains unchanged, in how many whole years will GNP per capita first exceed the poverty line?\n(b) Once the poverty line is crossed, the government decides to invest 10 % of GNP per capita each year. The investment multiplier is 1.5, which raises the annual growth rate by an additional 2 % points for the subsequent years. Calculate the GNP per capita at the end of the third year after the investment programme begins.

Answer Options

A. It takes 5 years to exceed the poverty line; after three further years GNP per capita ≈ $1,800.
Correct Answer B. It takes 5 years to exceed the poverty line; after three further years GNP per capita ≈ $1,876.
C. It takes 4 years to exceed the poverty line; after three further years GNP per capita ≈ $1,720.
D. It takes 6 years to exceed the poverty line; after three further years GNP per capita ≈ $1,950.
Correct Answer
B
Correct Option:
It takes 5 years to exceed the poverty line; after three further years GNP per capita ≈ $1,876.

About This Question

This is Waec Model Questions Vol1 2025 Economics Question 8. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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