Post Utme Achievers University 2023 Economics Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2023 Economics Objective / Multiple Choice
Question 11 POST_UTME_ACHIEVERS_UNIVERSITY • 2023 • ECONOMICS • objective

Consider a small open economy with a fixed exchange rate. The government imposes a tariff of 20% on imported goods. U\sing the Marshall-Lerner condition, derive an expression for the tariff revenue as a function of the nominal exchange rate and the price elasticity of demand for imports.

Answer Options

A. \( TR = 0.2 \times P \times Q \)
Correct Answer B. \( TR = 0.2 \times P \times Q \times eta \)
C. \( TR = 0.2 \times \frac{P}{Q} \)
D. \( TR = 0.2 \times \frac{P}{Q} \times eta \)
Correct Answer
B
Correct Option:
\( TR = 0.2 \times P \times Q \times eta \)

About This Question

This is Post Utme Achievers University 2023 Economics Question 11. It is one of the objective questions from the 2023 Post Utme Achievers University Economics examination.

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