Post Utme Babcock University 2017 Commerce Question 34

Practice objective / multiple choice question 34 from the 2017 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2017 Commerce Objective / Multiple Choice
Question 34 POST_UTME_BABCOCK_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. A country producing both wheat and cloth, but producing more wheat than cloth.
B. A country producing both wheat and cloth, but producing more cloth than wheat.
Correct Answer C. A country producing only wheat, while another country produces only cloth.
D. A country producing both wheat and cloth, but producing them at the same opportunity cost.
Correct Answer
C
Correct Option:
A country producing only wheat, while another country produces only cloth.

About This Question

This is Post Utme Babcock University 2017 Commerce Question 34. It is one of the objective questions from the 2017 Post Utme Babcock University Commerce examination.

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