Post Utme Aaua 2017 Commerce Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Aaua Commerce examination.

Post Utme Aaua 2017 Commerce Objective / Multiple Choice
Question 6 POST_UTME_AAUA • 2017 • COMMERCE • objective

The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?

Answer Options

Correct Answer A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
C. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
D. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
Correct Answer
A
Correct Option:
Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.

About This Question

This is Post Utme Aaua 2017 Commerce Question 6. It is one of the objective questions from the 2017 Post Utme Aaua Commerce examination.

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