Post Utme Futa 2023 Economics Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Futa Economics examination.

Post Utme Futa 2023 Economics Objective / Multiple Choice
Question 11 POST_UTME_FUTA • 2023 • ECONOMICS • objective

The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the elasticities of demand for imports and exports exceeds 1. Which of the following scenarios would lead to an improvement in the balance of payments?

Answer Options

A. An increase in the price of imports
B. A decrease in the price of exports
Correct Answer C. An increase in the price of exports
D. A decrease in the price of imports
Correct Answer
C
Correct Option:
An increase in the price of exports

About This Question

This is Post Utme Futa 2023 Economics Question 11. It is one of the objective questions from the 2023 Post Utme Futa Economics examination.

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