Waec Model Questions Vol1 2020 Economics Question 22

Practice objective / multiple choice question 22 from the 2020 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2020 Economics Objective / Multiple Choice Medium Difficulty
Question 22 WAEC_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

Country A exports 5,000 tonnes of cocoa at the world price $2.5 per kg and imports 3,000 tonnes of wheat at $1.8 per kg. The government imposes a 10% export tax on cocoa and a 5% import tariff on wheat. At the same time the exchange rate moves from $1 = ₦350 to $1 = ₦380. Assuming quantities remain unchanged, calculate the change in net foreign‑exchange earnings (in ₦) after these policies are implemented.

Answer Options

A. Net foreign‑exchange earnings fall by ₦400,000,000
Correct Answer B. Net foreign‑exchange earnings fall by ₦364,600,000
C. Net foreign‑exchange earnings fall by ₦350,000,000
D. Net foreign‑exchange earnings increase by ₦100,000,000
Correct Answer
B
Correct Option:
Net foreign‑exchange earnings fall by ₦364,600,000

About This Question

This is Waec Model Questions Vol1 2020 Economics Question 22. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support