Neco Model Questions Vol1 2023 Government Question 32
Practice objective / multiple choice question 32 from the 2023 Neco Model Questions Vol1 Government examination.
Country \(A\) imposes a 10\% tariff on imports of good \(X\) from Country \(B\). Before the tariff, Country \(A\) imported \(500,000\) units at a price of \$2\) per unit (priced in B‑dollars) and exported \(300,000\) units at a price of \$3\) per unit (also in B‑dollars). After the tariff, the import quantity falls by 15\% and the import price rises by the tariff rate. At the same time, the export price falls by 5\% due to retaliation. The exchange rate changes from \(1\) A‑dollar = \(0.8\) B‑dollar to \(1\) A‑dollar = \(0.85\) B‑dollar. Calculate the change in Country \(A\)'s trade balance (in A‑dollars) resulting from these developments, giving the answer to the nearest whole A‑dollar.
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About This Question
This is Neco Model Questions Vol1 2023 Government Question 32. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Government examination.
Difficulty level: Hard .
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