The Marshall-Lerner condition states that devaluation improves the trade balance if: MCQ with Answer and Explanation

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The Marshall-Lerner condition states that devaluation improves the trade balance if:

A. the sum is less than one

B. import tariffs are raised

C. exports exceed imports

D. the sum of price elasticities of demand for exports and imports is greater than one

Answer: Option D

Solution (By JKSSB Mock Tests)

The Marshall-Lerner condition requires the sum of export and import demand elasticities to exceed one.

This question belongs to: Economy GK Economy Set 1

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Correct Answer: Option C

Explanation:
Non-affordable residential construction attracts 5% GST without ITC.

This question belongs to: Economy GK Economy Set 1

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Correct Answer: Option C

Explanation:
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Correct Answer: Option C

Explanation:
The Lorenz curve graphically represents the distribution of income or wealth.

This question belongs to: Economy GK Economy Set 1

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