Post Utme Osustech 2023 Economics Question 11

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

Post Utme Osustech 2023 Economics Objective / Multiple Choice
Question 11 POST_UTME_OSUSTECH • 2023 • ECONOMICS • objective

A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, this equilibrium is not sustainable in the long run. What is the main reason for this?

Answer Options

Correct Answer A. The country's imports are not matched by an equivalent increase in exports.
B. The country's exports are not matched by an equivalent increase in imports.
C. The country's trade deficit is financed by foreign investment.
D. The country's trade surplus is financed by foreign investment.
Correct Answer
A
Correct Option:
The country's imports are not matched by an equivalent increase in exports.

About This Question

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

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