Post Utme Abu 2024 Commerce Question 24

Practice objective / multiple choice question 24 from the 2024 Post Utme Abu Commerce examination.

Post Utme Abu 2024 Commerce Objective / Multiple Choice
Question 24 POST_UTME_ABU • 2024 • 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 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 150 units of good Y.
Correct Answer C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 150 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
Correct Answer
C
Correct Option:
Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.

About This Question

This is Post Utme Abu 2024 Commerce Question 24. It is one of the objective questions from the 2024 Post Utme Abu Commerce examination.

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