Neco 2020 Economics Question 23
Practice objective / multiple choice question 23 from the 2020 Neco Economics examination.
Country X's export price index for coffee rises from 100 to 112 and its import price index for oil rises from 100 to 105.\n(a) Calculate the percentage change in the terms of trade after these movements.\n(b) The government then imposes a 10% ad valorem tariff on oil imports. Compute the new percentage change in the terms of trade relative to the original base period.
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About This Question
This is Neco 2020 Economics Question 23. It is one of the objective questions from the 2020 Neco Economics examination.
Difficulty level: Medium .
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