Post Utme Covenant University 2023 Economics Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2023 Economics Objective / Multiple Choice
Question 39 POST_UTME_COVENANT_UNIVERSITY • 2023 • ECONOMICS • objective

A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. U\sing the concept of comparative advantage, explain why a country may still experience a trade deficit despite having a balance of payments in equilibrium.

Answer Options

A. The country's imports are more valuable than its exports.
Correct Answer B. The country's exports are more valuable than its imports.
C. The country's trade deficit is offset by foreign investment.
D. The country's trade deficit is financed by domestic savings.
Correct Answer
B
Correct Option:
The country's exports are more valuable than its imports.

About This Question

This is Post Utme Covenant University 2023 Economics Question 39. It is one of the objective questions from the 2023 Post Utme Covenant University Economics examination.

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