Neco 2025 Government Question 8
Practice objective / multiple choice question 8 from the 2025 Neco Government examination.
Country X originally exported \$120\,billion and imported \$150\,billion. The government first imposes a tariff that raises export revenue by 5\% and reduces import volume by 8\% (both relative to the original values). Afterwards it signs a trade agreement that reduces the tariff on imports by 3\% of the original import value and, as a result, increases import volume by 2\% of the original import value. Assuming all other factors remain unchanged, what is the net change (in billions of dollars) in the trade balance (exports minus imports) after both policies are implemented?
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About This Question
This is Neco 2025 Government Question 8. It is one of the objective questions from the 2025 Neco Government examination.
Difficulty level: Hard .
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