Waec Model Questions Vol1 2023 Economics Question 47
Practice objective / multiple choice question 47 from the 2023 Waec Model Questions Vol1 Economics examination.
In 2020 the export price index of a country was 120 and the import price index was 100. Export volume that year was 500 million units and import volume was 600 million units. By the end of 2025 the export price index had risen to 138 while the import price index had risen to 110. Export volume grows at 2 % per annum and import volume at 1.5 % per annum.\ (a) Compute the terms of trade index for 2020 and for 2025.\ (b) State the percentage change in the terms of trade over the period.\ (c) If nominal export earnings are calculated as (export price index × export volume) in base‑year dollars, determine the real export earnings in 2025 after adjusting for the change in terms of trade.
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About This Question
This is Waec Model Questions Vol1 2023 Economics Question 47. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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