Neco Model Questions Vol1 2018 Economics Question 32
Practice objective / multiple choice question 32 from the 2018 Neco Model Questions Vol1 Economics examination.
In a given year, Country B exported goods worth $200 million and imported goods worth $150 million. During the next year, the export price index rose by 10 % while the import price index rose by 5 %, with quantities of both exports and imports remaining unchanged. Assuming that the change in the terms of trade is the only source of change in real income, calculate the percentage change in real income and the new level of real income if the initial real income was $1,000 million.
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About This Question
This is Neco Model Questions Vol1 2018 Economics Question 32. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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