Post Utme Covenant University 2025 Commerce Question 36

Practice objective / multiple choice question 36 from the 2025 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2025 Commerce Objective / Multiple Choice
Question 36 POST_UTME_COVENANT_UNIVERSITY • 2025 • 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 produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
Correct Answer C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Correct Answer
C
Correct Option:
Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.

About This Question

This is Post Utme Covenant University 2025 Commerce Question 36. It is one of the objective questions from the 2025 Post Utme Covenant University Commerce examination.

View More Post Utme Covenant University 2025 Commerce Questions More Post Utme Covenant University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support