Waec Model Questions Vol1 2024 Commerce Question 2

Practice essay / theory question 2 from the 2024 Waec Model Questions Vol1 Commerce examination. This question covers Trade .

Waec Model Questions Vol1 2024 Commerce Essay / Theory

Topic: Trade

Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • COMMERCE • essay

In 2023, Nigeria exported 2.5 million tonnes of cocoa at an average world price of ₦1,500 per kilogram. The same year the country imported 1.2 million tonnes of wheat at an average price of ₦2,500 per kilogram. The government subsequently imposed a 10 % tariff on wheat imports.

Question Parts

( a )

Calculate the total export revenue from cocoa and the total import cost for wheat before the tariff. State the trade balance (export revenue minus import cost).

( b )

Determine the terms of trade (ToT) before the tariff, expressed as a percentage, using the formula ToT = (Export Price Index / Import Price Index) × 100, where the price indices are the given average prices.

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About This Question

This is Waec Model Questions Vol1 2024 Commerce Question 2. It is one of the essay questions from the 2024 Waec Model Questions Vol1 Commerce examination.

The question covers Trade .

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