Post Utme Covenant University 2023 Economics Question 22

Practice objective / multiple choice question 22 from the 2023 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2023 Economics Objective / Multiple Choice
Question 22 POST_UTME_COVENANT_UNIVERSITY • 2023 • ECONOMICS • objective

A country is experiencing a trade deficit due to a large imbalance between its imports and exports. U\sing the concept of comparative advantage, explain how the country can use trade policies to reduce its trade deficit and improve its balance of payments.

Answer Options

A. The country can use trade policies such as tariffs and quotas to reduce its imports and increase its exports.
Correct Answer B. The country can use trade policies such as free trade agreements and investment incentives to attract foreign investment and increase its exports.
C. The country can use trade policies such as currency devaluation and export subsidies to increase its exports and reduce its imports.
D. The country can use trade policies such as import substitution and export promotion to reduce its trade deficit and improve its balance of payments.
Correct Answer
B
Correct Option:
The country can use trade policies such as free trade agreements and investment incentives to attract foreign investment and increase its exports.

About This Question

This is Post Utme Covenant University 2023 Economics Question 22. It is one of the objective questions from the 2023 Post Utme Covenant University Economics examination.

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