Neco Model Questions Vol1 2017 Government Question 12

Practice objective / multiple choice question 12 from the 2017 Neco Model Questions Vol1 Government examination.

Neco Model Questions Vol1 2017 Government Objective / Multiple Choice Hard Difficulty
Question 12 NECO_MODEL_QUESTIONS_VOL1 • 2017 • GOVERNMENT • objective

Country A initially imports \$200\) million of goods from Country B and exports \$150\) million to Country B. After new tariffs, imports fall by 12\% and exports fall by 7\%. At the same time, domestic production of the imported goods rises by 5\% of the original import value, reducing the need for imports. What is Country A's new trade balance (exports minus effective imports) and does the balance improve or worsen compared with the original deficit?

Answer Options

A. Deficit of $46.5 million; the deficit improved by $3.5 million
B. Deficit of $36.5 million; the deficit improved by $13.5 million
Correct Answer C. Deficit of $26.5 million; the deficit improved by $23.5 million
D. Deficit of $26.5 million; the deficit improved by $13.5 million
Correct Answer
C
Correct Option:
Deficit of $26.5 million; the deficit improved by $23.5 million

About This Question

This is Neco Model Questions Vol1 2017 Government Question 12. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Government examination.

Difficulty level: Hard .

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