If the Sum of Elasticities of Demands for Both Imports

question 38

Multiple Choice

If the sum of elasticities of demands for both imports and exports is less than 1,then:

• A) the Marshall-Lerner condition is met and trade balance improves.
• B) the Marshall-Lerner condition is met and trade balance decreases.
• C) the Marshall-Lerner condition is not met and trade balance improves.
• D) the Marshall-Lerner condition is not met and trade balance decreases.

Analyze and compare financial statements using common-sized financial statements and ratio analysis.

Understand the presentation and significance of accumulated other comprehensive income within financial statements.

Comprehend the significance of inventory turnover and days’ sales in inventory as measures of efficiency and liquidity.

Appreciate the utility of financial analysis tools in making comparative evaluations across companies or time periods.