Post Utme Christopher University 2019 Commerce Question 36

Practice objective / multiple choice question 36 from the 2019 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2019 Commerce Objective / Multiple Choice
Question 36 POST_UTME_CHRISTOPHER_UNIVERSITY • 2019 • COMMERCE • objective

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization leads to increased efficiency in production, using the example of a country that specializes in producing textiles.

Answer Options

Correct Answer A. Specialization leads to increased efficiency in production because it allows countries to focus on producing goods for which they have a comparative advantage.
B. Specialization leads to increased efficiency in production because it allows countries to reduce their production costs.
C. Specialization leads to increased efficiency in production because it allows countries to increase their production capacity.
D. Specialization leads to increased efficiency in production because it allows countries to reduce their trade barriers.
Correct Answer
A
Correct Option:
Specialization leads to increased efficiency in production because it allows countries to focus on producing goods for which they have a comparative advantage.

About This Question

This is Post Utme Christopher University 2019 Commerce Question 36. It is one of the objective questions from the 2019 Post Utme Christopher University Commerce examination.

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