Post Utme Joseph Ayo Babalola University 2020 Economics Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2020 Economics Objective / Multiple Choice
Question 16 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2020 • ECONOMICS • objective

Consider a country that imports 80% of its coffee and exports 70% of its cocoa. If the price of coffee increases by 15% and the price of cocoa decreases by 10%, what is the expected change in the country's trade balance?

Answer Options

A. The trade balance will worsen by 12%
Correct Answer B. The trade balance will improve by 8%
C. The trade balance will worsen by 6%
D. The trade balance will improve by 15%
Correct Answer
B
Correct Option:
The trade balance will improve by 8%

About This Question

This is Post Utme Joseph Ayo Babalola University 2020 Economics Question 16. It is one of the objective questions from the 2020 Post Utme Joseph Ayo Babalola University Economics examination.

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