Post Utme Christopher University 2019 Commerce Question 6

Practice objective / multiple choice question 6 from the 2019 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2019 Commerce Objective / Multiple Choice
Question 6 POST_UTME_CHRISTOPHER_UNIVERSITY • 2019 • 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

Correct Answer A. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 5 units of wheat and 10 units of cloth.
B. Country A produces 10 units of wheat and 10 units of cloth, while Country B produces 5 units of wheat and 5 units of cloth.
C. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 10 units of wheat and 10 units of cloth.
D. Country A produces 5 units of wheat and 10 units of cloth, while Country B produces 10 units of wheat and 5 units of cloth.
Correct Answer
A
Correct Option:
Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 5 units of wheat and 10 units of cloth.

About This Question

This is Post Utme Christopher University 2019 Commerce Question 6. It is one of the objective questions from the 2019 Post Utme Christopher University Commerce examination.

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