Waec Model Questions Vol1 2021 Economics Question 36

Practice objective / multiple choice question 36 from the 2021 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 36 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

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.

Answer Options

A. 71,200 Naira per ton (net cost)
B. 80,000 Naira per ton (net cost)
Correct Answer C. 73,143 Naira per ton (net cost)
D. 78,500 Naira per ton (net cost)
Correct Answer
C
Correct Option:
73,143 Naira per ton (net cost)

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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