Post Utme Osustech 2025 Economics Question 28

Practice objective / multiple choice question 28 from the 2025 Post Utme Osustech Economics examination.

Post Utme Osustech 2025 Economics Objective / Multiple Choice
Question 28 POST_UTME_OSUSTECH • 2025 • 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 is greater than 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 Osustech 2025 Economics Question 28. It is one of the objective questions from the 2025 Post Utme Osustech Economics examination.

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