Waec Model Questions Vol1 2023 Government Question 39
Practice objective / multiple choice question 39 from the 2023 Waec Model Questions Vol1 Government examination.
Nigeria is evaluating a bilateral trade agreement with Country X. The agreement will (i) eliminate tariffs on Nigerian exports to X and (ii) impose a 5 % tariff on imports from X. Currently, Nigeria exports ₦15 billion to X and imports ₦20 billion. Studies estimate that eliminating the export tariff will raise export volume by 20 % and that the 5 % import tariff will cut import volume by 10 %. Net foreign‑exchange earnings from trade are calculated as (value of exports - value of imports) after the tariff effects. By how many billions of naira will net foreign‑exchange earnings change as a result of the agreement?
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About This Question
This is Waec Model Questions Vol1 2023 Government Question 39. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Government examination.
Difficulty level: Hard .
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