Post Utme Lasu 2024 Economics Question 1

Practice objective / multiple choice question 1 from the 2024 Post Utme Lasu Economics examination.

Post Utme Lasu 2024 Economics Objective / Multiple Choice
Question 1 POST_UTME_LASU • 2024 • ECONOMICS • objective

The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the price elasticities of demand for imports and exports is greater than 1. Which of the following statements is a correct interpretation of this condition?

Answer Options

A. The country's trade balance will improve if the price elasticity of demand for imports is greater than 1.
Correct Answer B. The country's trade balance will improve if the sum of the price elasticities of demand for imports and exports is greater than 1.
C. The country's trade balance will improve if the price elasticity of demand for exports is greater than 1.
D. The country's trade balance will improve if the price elasticity of demand for imports is less than 1.
Correct Answer
B
Correct Option:
The country's trade balance will improve if the sum of the price elasticities of demand for imports and exports is greater than 1.

About This Question

This is Post Utme Lasu 2024 Economics Question 1. It is one of the objective questions from the 2024 Post Utme Lasu Economics examination.

View More Post Utme Lasu 2024 Economics Questions More Post Utme Lasu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support