Post Utme Delsu 2021 Economics Question 1

Practice objective / multiple choice question 1 from the 2021 Post Utme Delsu Economics examination.

Post Utme Delsu 2021 Economics Objective / Multiple Choice
Question 1 POST_UTME_DELSU • 2021 • ECONOMICS • objective

Determine the Marshall-Lerner condition for a country experiencing a trade deficit. Assume the country's export price elasticity is 0.5 and import price elasticity is 0.2.

Answer Options

Correct Answer A. The Marshall-Lerner condition is met if the sum of the export and import price elasticities is greater than 1.
B. The Marshall-Lerner condition is met if the sum of the export and import price elasticities is less than 1.
C. The Marshall-Lerner condition is met if the export price elasticity is greater than the import price elasticity.
D. The Marshall-Lerner condition is met if the export price elasticity is less than the import price elasticity.
Correct Answer
A
Correct Option:
The Marshall-Lerner condition is met if the sum of the export and import price elasticities is greater than 1.

About This Question

This is Post Utme Delsu 2021 Economics Question 1. It is one of the objective questions from the 2021 Post Utme Delsu Economics examination.

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