Post Utme Afe Babalola University 2019 Commerce Question 11

Practice objective / multiple choice question 11 from the 2019 Post Utme Afe Babalola University Commerce examination.

Post Utme Afe Babalola University 2019 Commerce Objective / Multiple Choice

Question 11 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2019 • COMMERCE • objective

The concept of production and specialization 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

Correct Answer A. By producing a good that it is relatively good at producing, a country can increase its overall productivity and efficiency.

B. By specializing in the production of a good, a country can reduce its costs and increase its competitiveness in the global market.

C. By producing a good that it is relatively good at producing, a country can increase its exports and earn more foreign exchange.

D. By specializing in the production of a good, a country can reduce its dependence on imports and increase its self-sufficiency.

Correct Answer

Correct Option:

By producing a good that it is relatively good at producing, a country can increase its overall productivity and efficiency.

About This Question

This is Post Utme Afe Babalola University 2019 Commerce Question 11. It is one of the objective questions from the 2019 Post Utme Afe Babalola University Commerce examination.

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