Post Utme Uniosun 2021 Economics Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2021 Economics Objective / Multiple Choice
Question 16 POST_UTME_UNIOSUN • 2021 • ECONOMICS • objective

The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the elasticities of demand for imports and exports exceeds 1. What is the implication of this condition for a country with an inelastic demand for imports and exports?

Answer Options

Correct Answer A. The country will experience a deterioration in its balance of payments.
B. The country will experience no change in its balance of payments.
C. The country will experience an improvement in its balance of payments.
D. The country will experience a worsening of its trade deficit.
Correct Answer
A
Correct Option:
The country will experience a deterioration in its balance of payments.

About This Question

This is Post Utme Uniosun 2021 Economics Question 16. It is one of the objective questions from the 2021 Post Utme Uniosun Economics examination.

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