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