Post Utme Unilag 2020 Economics Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Unilag Economics examination.

Post Utme Unilag 2020 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNILAG • 2020 • ECONOMICS • objective

Consider a country that imports 60% of its coffee and exports 40% of its coffee. If the price of coffee in the international market increases by 15%, and the country's terms of trade improve, what is the impact on the country's balance of payments?

Answer Options

A. The country's balance of payments will worsen.
Correct Answer B. The country's balance of payments will improve.
C. The country's balance of payments will remain unchanged.
D. The country's balance of payments will worsen due to the increase in coffee prices.
Correct Answer
B
Correct Option:
The country's balance of payments will improve.

About This Question

This is Post Utme Unilag 2020 Economics Question 11. It is one of the objective questions from the 2020 Post Utme Unilag Economics examination.

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