Post Utme Aaua 2017 Commerce Question 11

Practice objective / multiple choice question 11 from the 2017 Post Utme Aaua Commerce examination.

Post Utme Aaua 2017 Commerce Objective / Multiple Choice
Question 11 POST_UTME_AAUA • 2017 • COMMERCE • objective

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization leads to increased efficiency and productivity in international trade.

Answer Options

Correct Answer A. Specialization leads to increased efficiency and productivity because it allows countries to focus on producing goods and services in which they have a comparative advantage.
B. Specialization leads to decreased efficiency and productivity because it limits the variety of goods and services produced by a country.
C. Specialization has no impact on efficiency and productivity in international trade.
D. Specialization leads to increased efficiency and productivity because it allows countries to produce goods and services at a lower cost.
Correct Answer
A
Correct Option:
Specialization leads to increased efficiency and productivity because it allows countries to focus on producing goods and services in which they have a comparative advantage.

About This Question

This is Post Utme Aaua 2017 Commerce Question 11. It is one of the objective questions from the 2017 Post Utme Aaua Commerce examination.

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