Post Utme Aaua 2020 Commerce Question 16

Practice objective / multiple choice question 16 from the 2020 Post Utme Aaua Commerce examination.

Post Utme Aaua 2020 Commerce Objective / Multiple Choice
Question 16 POST_UTME_AAUA • 2020 • 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

A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
Correct Answer C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Correct Answer
C
Correct Option:
Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.

About This Question

This is Post Utme Aaua 2020 Commerce Question 16. It is one of the objective questions from the 2020 Post Utme Aaua Commerce examination.

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