Post Utme Pan Atlantic University 2022 Economics Question 34

Practice objective / multiple choice question 34 from the 2022 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2022 Economics Objective / Multiple Choice
Question 34 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2022 • 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 exceeds 1. Which of the following scenarios would lead to an improvement in the balance of payments, according to the Marshall-Lerner condition?

Answer Options

A. An increase in the price of imports, accompanied by a decrease in the price of exports
B. A decrease in the price of imports, accompanied by an increase in the price of exports
Correct Answer C. An increase in the price of exports, accompanied by a decrease in the price of imports
D. A decrease in the price of exports, accompanied by an increase in the price of imports
Correct Answer
C
Correct Option:
An increase in the price of exports, accompanied by a decrease in the price of imports

About This Question

This is Post Utme Pan Atlantic University 2022 Economics Question 34. It is one of the objective questions from the 2022 Post Utme Pan Atlantic University Economics examination.

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