Post Utme Babcock University 2023 Commerce Question 31

Practice objective / multiple choice question 31 from the 2023 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2023 Commerce Objective / Multiple Choice
Question 31 POST_UTME_BABCOCK_UNIVERSITY • 2023 • 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 wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Correct Answer 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.
C. Country A produces 100 units of wheat and 50 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 100 units of wheat and 50 units of cloth.
Correct Answer
B
Correct Option:
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.

About This Question

This is Post Utme Babcock University 2023 Commerce Question 31. It is one of the objective questions from the 2023 Post Utme Babcock University Commerce examination.

View More Post Utme Babcock University 2023 Commerce Questions More Post Utme Babcock 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