Post Utme Al Hikmah University 2017 Commerce Question 35

Practice objective / multiple choice question 35 from the 2017 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2017 Commerce Objective / Multiple Choice
Question 35 POST_UTME_AL-HIKMAH_UNIVERSITY • 2017 • 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 compared to other countries. 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 50 units of wheat and 100 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.
D. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 150 units of wheat and 50 units of cloth.
Correct Answer
C
Correct Option:
Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.

About This Question

This is Post Utme Al Hikmah University 2017 Commerce Question 35. It is one of the objective questions from the 2017 Post Utme Al Hikmah University Commerce examination.

View More Post Utme Al Hikmah University 2017 Commerce Questions More Post Utme Al Hikmah University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support