Waec Model Questions Vol1 2019 Economics Question 48
Practice objective / multiple choice question 48 from the 2019 Waec Model Questions Vol1 Economics examination.
A developing country has a current real GDP of ₦5,000 billion. The government plans to increase public investment by ₦200 billion. The marginal propensity to consume (MPC) is 0.75 and the simple Keynesian multiplier applies to the investment. Empirical evidence shows that each 1 % increase in real GDP per capita reduces the poverty head‑count ratio by 0.5 percentage points, holding other factors constant. The current poverty head‑count ratio is 30 %. Assuming the population remains unchanged, will the planned investment achieve a reduction of at least 2 percentage points in the poverty head‑count ratio? State Yes or No.
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About This Question
This is Waec Model Questions Vol1 2019 Economics Question 48. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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