Post Utme Achievers University 2021 Commerce Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2021 Commerce Objective / Multiple Choice
Question 21 POST_UTME_ACHIEVERS_UNIVERSITY • 2021 • 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.
Correct Answer 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 50 units of good Y.
C. Country A produces 100 units of good X and 100 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
D. 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.
Correct Answer
B
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 50 units of good Y.

About This Question

This is Post Utme Achievers University 2021 Commerce Question 21. It is one of the objective questions from the 2021 Post Utme Achievers University Commerce examination.

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