Post Utme Coal City University 2022 Commerce Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2022 Commerce Objective / Multiple Choice
Question 36 POST_UTME_COAL_CITY_UNIVERSITY • 2022 • COMMERCE • objective

The concept of comparative advantage in international trade suggests that a country should specialize in producing goods for which it has a lower opportunity cost compared to another country. Which of the following is a correct example of comparative advantage?

Answer Options

A. Country A producing 100 units of wheat and 50 units of cloth
B. Country B producing 100 units of wheat and 50 units of cloth
Correct Answer C. Country A producing 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth
D. Country A producing 100 units of cloth and 50 units of wheat
Correct Answer
C
Correct Option:
Country A producing 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth

About This Question

This is Post Utme Coal City University 2022 Commerce Question 36. It is one of the objective questions from the 2022 Post Utme Coal City University Commerce examination.

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