Post Utme Aaua 2019 Commerce Question 39

Practice objective / multiple choice question 39 from the 2019 Post Utme Aaua Commerce examination.

Post Utme Aaua 2019 Commerce Objective / Multiple Choice
Question 39 POST_UTME_AAUA • 2019 • COMMERCE • objective

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.

Answer Options

A. By producing a good that is in high demand and has a high price elasticity of demand.
B. By producing a good that is in low demand and has a low price elasticity of demand.
Correct Answer C. By producing a good that is in high demand and has a low price elasticity of demand.
D. By producing a good that is in low demand and has a high price elasticity of demand.
Correct Answer
C
Correct Option:
By producing a good that is in high demand and has a low price elasticity of demand.

About This Question

This is Post Utme Aaua 2019 Commerce Question 39. It is one of the objective questions from the 2019 Post Utme Aaua Commerce examination.

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