Neco Model Questions Vol1 2025 Economics Question 30

Practice objective / multiple choice question 30 from the 2025 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 30 NECO_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

During a year, Country X's export price index rose from 100 to 130 while its import price index rose from 100 to 115. Nominal GDP grew by 4 % over the same period. Calculate the percentage change in the terms of trade and the adjusted real income growth rate that incorporates the terms‑of‑trade effect.

Answer Options

Correct Answer A. ToT improves by about 13.0 % and adjusted real income growth is about 17.0 %
B. ToT improves by about 15.0 % and adjusted real income growth is about 19.0 %
C. ToT improves by about 10.0 % and adjusted real income growth is about 14.0 %
D. ToT improves by about 12.5 % and adjusted real income growth is about 16.0 %
Correct Answer
A
Correct Option:
ToT improves by about 13.0 % and adjusted real income growth is about 17.0 %

About This Question

This is Neco Model Questions Vol1 2025 Economics Question 30. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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