Post Utme Uniosun 2018 Economics Question 11

Practice objective / multiple choice question 11 from the 2018 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2018 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNIOSUN • 2018 • ECONOMICS • objective

The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the percentage changes in its export and import prices is greater than the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?

Answer Options

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

About This Question

This is Post Utme Uniosun 2018 Economics Question 11. It is one of the objective questions from the 2018 Post Utme Uniosun Economics examination.

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