Post Utme Lead City University 2024 Economics Question 1

Practice objective / multiple choice question 1 from the 2024 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2024 Economics Objective / Multiple Choice
Question 1 POST_UTME_LEAD_CITY_UNIVERSITY • 2024 • ECONOMICS • objective

U\sing the Marshall-Lerner condition, determine the effect of a 10% depreciation in the value of the Nigerian Naira on the balance of payments when the country's import price elasticity is 0.5 and export price elasticity is 1.2.

Answer Options

A. The depreciation will lead to an improvement in the balance of payments.
Correct Answer B. The depreciation will lead to a deterioration in the balance of payments.
C. The depreciation will have no effect on the balance of payments.
D. The depreciation will lead to a decrease in the trade deficit.
Correct Answer
B
Correct Option:
The depreciation will lead to a deterioration in the balance of payments.

About This Question

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

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