Economics Paper 2, WASSCE (PC), 2016

Question 2

The trade figures for a West African country in a given year are outlined below.
Study the table and use the information given to answer the questions that follow:
           

 

ITEM

                                           
AMOUNT ($ m)

Export of cocoa

Export of crude oil

Import of motor vehicles

Import of plant and machinery

Shipping services on exports

Shipping services on imports

Insurance paid on exports

Insurance paid on imports

Expenditure on foreign tours

Expenditure by foreign tourists

Grants to other countries

Grants received

Loans from abroad

Foreign private investment

Investment abroad

                                                        200

                                                        950

                                                        250

                                                        450

                                                        220

                                                        180

                                                          45

                                                          60

                                                        140

                                                          80

                                                          70

                                                        300

                                                        550

                                                        200

                                                        350

 

Calculate:
(a)        balance of trade;

(b)        invisible balance;

(c)        current account balance;

(d)        capital account balance;

(e)        balance of payments.

 

 

 

This is the alternative data response question to question (1) and it attracted very few candidates. The question required candidates to calculate the balance of trade, invisible balance, current account balance, capital account balance and balance of payments of a West African country. Most of the candidates who attempted this question could compute the value of balance of trade in the (a) part of the question but only few of them could distinguish between invisible balance and current account balance or capital account balance and balance of payments. Candidates scored relatively low marks in this question.