Question : The country can improve its balance of payments by devaluation when the sum of elasticity of demand for exports and imports is _____________.
Option 1: less than unity
Option 2: equal to unity
Option 3: greater than unity
Option 4: zero
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Correct Answer: greater than unity
Solution : The correct option is greater than unity.
If the sum of the elasticity of demand for exports and imports is greater than unity (greater than 1 in absolute value), it implies that the overall responsiveness of both export and import quantities to changes in price is significant. In this situation, devaluation can potentially lead to an improvement in the balance of payments.
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Question : The difference in the value of visible exports and visible imports is called :
Option 1: Balance Sheet of items
Option 2: Balance of Payments
Option 3: Balance of Trade
Option 4: Balance of Account
Question : Select the correct statement about the properties of a triangle.
Option 1: The sum of two sides may be equal to the third side.
Option 2: The sum of two sides is always equal to the third side.
Option 3: The sum of two sides is always greater than the third side.
Option 4: The sum of two sides is always less than the third side.
Question : In the case of inferior good , the income elasticity of demand is :
Option 1: Zero.
Option 2: Negative .
Option 3: Infinite .
Option 4: Positive .
Question : If $0°<\theta<90°$, the value of $\sin\theta+\cos\theta$ is:
Option 1: Equal to 1
Option 2: Greater than 1
Option 3: Less than 1
Option 4: Equal to 2
Question : If A is 40% less than B and C is 40% of the sum of A and B, then by what percentage is B greater than C?
Option 1: 60
Option 2: $56 \frac{1}{4}$
Option 3: $40 \frac{1}{8}$
Option 4: 36
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