Waec Model Questions Vol1 2021 Economics Question 36
Practice objective / multiple choice question 36 from the 2021 Waec Model Questions Vol1 Economics examination.
A country imports wheat. The world price is $200 per ton. The government imposes a specific tariff of $15 per ton and an ad valorem tariff of 5 % on the value after the specific tariff. The exchange rate is ₦360 per US$. After the tariffs, the government gives a subsidy of 10 % on the total cost (in Naira). The domestic price of wheat is ₦78,000 per ton. Calculate the net cost per ton (in Naira) to an importer after all tariffs, conversion and subsidy, and state whether importing wheat is cheaper than the domestic price.
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About This Question
This is Waec Model Questions Vol1 2021 Economics Question 36. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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