Neco Model Questions Vol1 2018 Economics Question 22

Practice objective / multiple choice question 22 from the 2018 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2018 Economics Objective / Multiple Choice Hard Difficulty
Question 22 NECO_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

During a year, the export price index increased from 100 to 115 while the import price index rose from 100 to 130. Export quantity was 200 million units and import quantity 150 million units, both unchanged. (i) By what percentage did the terms of trade change? (ii) What is the new trade surplus (in monetary units) after the price changes?

Answer Options

A. Terms of trade fell by 9.87% and the trade surplus is ₦4,200
Correct Answer B. Terms of trade fell by 11.54% and the trade surplus is ₦3,500
C. Terms of trade fell by 13.20% and the trade surplus is ₦2,800
D. Terms of trade fell by 10.05% and the trade surplus is ₦3,900
Correct Answer
B
Correct Option:
Terms of trade fell by 11.54% and the trade surplus is ₦3,500

About This Question

This is Neco Model Questions Vol1 2018 Economics Question 22. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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