Post Utme Crawford University 2020 Economics Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Crawford University Economics examination.

Post Utme Crawford University 2020 Economics Objective / Multiple Choice

Question 16 POST_UTME_CRAWFORD_UNIVERSITY • 2020 • ECONOMICS • objective

Consider a small open economy with a fixed exchange rate. The government imposes a tariff of 15% on imported goods. U\sing the Marshall-Lerner condition, determine whether the tariff will lead to a trade surplus or deficit.

Answer Options

A. Trade surplus

Correct Answer B. Trade deficit

C. No effect on trade balance

D. Uncertain effect on trade balance

Correct Answer

Correct Option:

Trade deficit

About This Question

This is Post Utme Crawford University 2020 Economics Question 16. It is one of the objective questions from the 2020 Post Utme Crawford University Economics examination.

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