WAEC Economics 2015 Objective — Question 48
Question 48 of 50 from the West African Examinations Council (WAEC) Economics 2015 Objective paper, with the correct answer and a full explanation.
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In order to correct adverse balance of payments problem, government should
- A. reduce tariffs
- B. increase subsidies on exportsCorrect
- C. increase tax on local industries
- D. reduce personal income tax
Explanation
Increasing subsidies on exports makes them cheaper/more competitive abroad, boosting export earnings and helping correct an adverse (deficit) balance of payments.
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