Post Utme Futa 2018 Economics Question 36

Practice objective / multiple choice question 36 from the 2018 Post Utme Futa Economics examination.

Post Utme Futa 2018 Economics Objective / Multiple Choice
Question 36 POST_UTME_FUTA • 2018 • ECONOMICS • objective

The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in Nigeria's balance of payments?

Answer Options

Correct Answer A. A 10% increase in Nigeria's export price and a 5% decrease in its import price
B. A 5% decrease in Nigeria's export price and a 10% increase in its import price
C. A 10% increase in Nigeria's export price and a 10% increase in its import price
D. A 5% decrease in Nigeria's export price and a 5% decrease in its import price
Correct Answer
A
Correct Option:
A 10% increase in Nigeria's export price and a 5% decrease in its import price

About This Question

This is Post Utme Futa 2018 Economics Question 36. It is one of the objective questions from the 2018 Post Utme Futa Economics examination.

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