Post Utme Caleb University 2025 Commerce Question 26

Practice objective / multiple choice question 26 from the 2025 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2025 Commerce Objective / Multiple Choice
Question 26 POST_UTME_CALEB_UNIVERSITY • 2025 • COMMERCE • objective

The concept of production 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

A. By producing a good that it is relatively good at producing, a country can still benefit from trade even if it is not the most efficient producer.
B. Specialization in production leads to economies of scale, which can make a country more competitive in the global market.
Correct Answer C. Comparative advantage allows a country to focus on producing goods that it is relatively good at producing, while importing goods that it is not as good at producing.
D. The concept of comparative advantage is irrelevant in the context of international trade.
Correct Answer
C
Correct Option:
Comparative advantage allows a country to focus on producing goods that it is relatively good at producing, while importing goods that it is not as good at producing.

About This Question

This is Post Utme Caleb University 2025 Commerce Question 26. It is one of the objective questions from the 2025 Post Utme Caleb University Commerce examination.

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