Question 35
POST_UTME_ACHIEVERS_UNIVERSITY
•
2017
•
COMMERCE
•
objective
The concept of production and specialization is an important aspect of international trade. What is the difference between absolute advantage and comparative advantage?
Answer Options
Correct Answer
A.
Absolute advantage refers to the ability of a country to produce a good at a lower opportunity cost, while comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost than another country
B.
Absolute advantage refers to the ability of a country to produce a good at a higher opportunity cost, while comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost
C.
Absolute advantage refers to the ability of a country to produce a good at the same opportunity cost, while comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost
D.
Absolute advantage refers to the ability of a country to produce a good at a lower opportunity cost, while comparative advantage refers to the ability of a country to produce a good at the same opportunity cost
Correct Answer
A
Correct Option:
Absolute advantage refers to the ability of a country to produce a good at a lower opportunity cost, while comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost than another country
About This Question
This is
Post Utme Achievers University
2017
Commerce
Question 35.
It is one of the
objective
questions from the
2017
Post Utme Achievers University
Commerce
examination.