Post Utme Coal City University 2023 Commerce Question 11

Practice objective / multiple choice question 11 from the 2023 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2023 Commerce Objective / Multiple Choice
Question 11 POST_UTME_COAL_CITY_UNIVERSITY • 2023 • 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

Correct Answer A. By focusing on a narrow range of products, a country can develop expertise and reduce costs.
B. By producing a good that is in high demand, a country can increase its exports and earn foreign currency.
C. By specializing in a good that is complementary to its existing products, a country can increase its overall trade efficiency.
D. By ignoring comparative advantage, a country can focus on producing a good that is in high demand, regardless of its efficiency.
Correct Answer
A
Correct Option:
By focusing on a narrow range of products, a country can develop expertise and reduce costs.

About This Question

This is Post Utme Coal City University 2023 Commerce Question 11. It is one of the objective questions from the 2023 Post Utme Coal City University Commerce examination.

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