WAEC Economics 2021 Objective — Question 42
Question 42 of 50 from the West African Examinations Council (WAEC) Economics 2021 Objective paper, with the correct answer and a full explanation.
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42. A measure that can be adopted to correct a country's balance of payments deficit is to
- A. allow the currency to appreciate to encourage imports.
- B. allow the currency to depreciate to encourage imports.
- C. adopt import substitution strategy.Correct
- D. restrict trade with all countries.
Explanation
Import substitution means producing locally what was previously imported, reducing import spending and easing a balance of payments deficit.
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