Waec Model Questions Vol1 2022 Economics Question 46

Practice objective / multiple choice question 46 from the 2022 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 46 WAEC_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

During 2022 the export price index of Country X rose from 120 to 138, while its import price index rose from 110 to 121. (i) Calculate the percentage change in the terms of trade over the year. (ii) If the export volume remained unchanged but the import volume fell by 5 %, determine whether the trade balance (in index terms) increased or decreased.

Answer Options

A. Terms of trade deteriorated by about 2.1 %; trade balance increased.
Correct Answer B. Terms of trade improved by about 4.6 %; trade balance increased.
C. Terms of trade improved by about 3.2 %; trade balance decreased.
D. Terms of trade improved by about 5.8 %; trade balance unchanged.
Correct Answer
B
Correct Option:
Terms of trade improved by about 4.6 %; trade balance increased.

About This Question

This is Waec Model Questions Vol1 2022 Economics Question 46. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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