Waec Model Questions Vol1 2022 Government Question 40
Practice objective / multiple choice question 40 from the 2022 Waec Model Questions Vol1 Government examination.
Country X imports 500,000 units of Good Y at a pre‑tariff price of $10 per unit and exports 300,000 units of Good Z at $12 per unit. The government then imposes a 20 % ad‑valorem tariff on imports of Good Y. As a result, the quantity of Good Y imported falls by 30 % and the domestic price rises by the full amount of the tariff. Export quantities and prices remain unchanged. What is the change in Country X's trade balance (export revenue - import expenditure) after the tariff is applied?
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About This Question
This is Waec Model Questions Vol1 2022 Government Question 40. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Government examination.
Difficulty level: Hard .
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