Waec Model Questions Vol1 2018 Economics Question 35
Practice objective / multiple choice question 35 from the 2018 Waec Model Questions Vol1 Economics examination.
Country X exports coffee and imports wheat. In year 1 the world price of coffee is $4 kg⁻¹ and wheat $2 kg⁻¹. The country exports 500,000 kg of coffee and imports 800,000 kg of wheat. In year 2 coffee price rises to $5 kg⁻¹ while wheat price falls to $1.80 kg⁻¹, with quantities unchanged. Calculate the percentage change in Country X's terms of trade from year 1 to year 2 and state whether its trade position improved.
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About This Question
This is Waec Model Questions Vol1 2018 Economics Question 35. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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