Waec Model Questions Vol1 2018 Government Question 18

Practice objective / multiple choice question 18 from the 2018 Waec Model Questions Vol1 Government examination.

Waec Model Questions Vol1 2018 Government Objective / Multiple Choice Hard Difficulty
Question 18 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • GOVERNMENT • objective

Nigeria is evaluating two foreign‑policy strategies to boost agricultural exports to a regional bloc. Strategy A: negotiate a 15 % tariff reduction on rice, expected to raise rice export volume by 25 % from 200,000 tonnes and increase revenue per tonne by $30 due to lower transport costs. Strategy B: sign a bilateral agreement providing a $20 per tonne subsidy for cocoa, expected to raise cocoa export volume by 10 % from 150,000 tonnes. World prices are $200 per tonne for rice and $500 per tonne for cocoa. The government wants the higher net export revenue (export revenue minus any subsidy cost). Which strategy yields the higher net export revenue?

Answer Options

A. Neither strategy improves net export revenue
B. Both strategies yield the same net export revenue
Correct Answer C. Strategy B
D. Strategy A
Correct Answer
C
Correct Option:
Strategy B

About This Question

This is Waec Model Questions Vol1 2018 Government Question 18. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Government examination.

Difficulty level: Hard .

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