Post Utme Ksu 2020 Economics Question 21

Practice objective / multiple choice question 21 from the 2020 Post Utme Ksu Economics examination.

Post Utme Ksu 2020 Economics Objective / Multiple Choice
Question 21 POST_UTME_KSU • 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
Correct Answer
B
Correct Option:
Trade deficit

About This Question

This is Post Utme Ksu 2020 Economics Question 21. It is one of the objective questions from the 2020 Post Utme Ksu Economics examination.

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