Post Utme Uniosun 2021 Economics Question 11

Practice objective / multiple choice question 11 from the 2021 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2021 Economics Objective / Multiple Choice
Question 11 POST_UTME_UNIOSUN • 2021 • ECONOMICS • objective

The Marshall-Lerner condition states that if the sum of the elasticities of demand for imports and exports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. Which of the following scenarios would lead to a violation of the Marshall-Lerner condition?

Answer Options

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

About This Question

This is Post Utme Uniosun 2021 Economics Question 11. It is one of the objective questions from the 2021 Post Utme Uniosun Economics examination.

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