Neco Model Questions Vol1 2019 Government Question 17

Practice objective / multiple choice question 17 from the 2019 Neco Model Questions Vol1 Government examination.

Neco Model Questions Vol1 2019 Government Objective / Multiple Choice Hard Difficulty
Question 17 NECO_MODEL_QUESTIONS_VOL1 • 2019 • GOVERNMENT • objective

Nigeria is considering two separate foreign‑policy initiatives.\n\nInitiative A: A trade agreement reduces the tariff on imported machinery by \(20\%\). As a result, machinery imports, which originally equal \(5\%\) of the national GDP of \(\text{₦}20\) trillion, increase in value by \(15\%\). Each additional \(\text{₦}1\) of machinery imported raises domestic production by \(0.5\) \(\text{₦}\).\n\nInitiative B: A foreign‑aid package of \(\$2\) billion is received. The exchange rate is \(\$1 = \text{₦}800\). For every \(\$1\) billion (or \(\text{₦}0.8\) trillion) of aid, the GDP grows by \(0.8\%\).\n\nWhich initiative yields the larger percentage increase in GDP?

Answer Options

Correct Answer A. Initiative B, because it raises GDP by 1.6 % compared with 0.375 % for Initiative A.
B. Initiative A, because it raises GDP by 0.5 % compared with 1.0 % for Initiative B.
C. Initiative A, because it raises GDP by 0.375 % compared with 1.6 % for Initiative B.
D. Initiative B, because it raises GDP by 1.2 % compared with 0.4 % for Initiative A.
Correct Answer
A
Correct Option:
Initiative B, because it raises GDP by 1.6 % compared with 0.375 % for Initiative A.

About This Question

This is Neco Model Questions Vol1 2019 Government Question 17. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Government examination.

Difficulty level: Hard .

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