Post Utme Pan Atlantic University 2018 Economics Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2018 Economics Objective / Multiple Choice
Question 6 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2018 • ECONOMICS • objective

U\sing the Marshall-Lerner condition, derive the condition for the balance of payments to improve in the short run.

Answer Options

Correct Answer A. The Marshall-Lerner condition states that the balance of payments will improve if the sum of the price and income elasticities of demand is greater than 1.
B. The Marshall-Lerner condition states that the balance of payments will improve if the sum of the price and income elasticities of demand is less than 1.
C. The Marshall-Lerner condition states that the balance of payments will improve if the sum of the price and income elasticities of demand is equal to 1.
D. The Marshall-Lerner condition states that the balance of payments will improve if the sum of the price and income elasticities of demand is greater than or equal to 1.
Correct Answer
A
Correct Option:
The Marshall-Lerner condition states that the balance of payments will improve if the sum of the price and income elasticities of demand is greater than 1.

About This Question

This is Post Utme Pan Atlantic University 2018 Economics Question 6. It is one of the objective questions from the 2018 Post Utme Pan Atlantic University Economics examination.

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