Post Utme Crawford University 2018 Commerce Question 24

Practice objective / multiple choice question 24 from the 2018 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2018 Commerce Objective / Multiple Choice
Question 24 POST_UTME_CRAWFORD_UNIVERSITY • 2018 • COMMERCE • objective

A foreign trade agreement between two countries involves the exchange of goods and services. Explain the concept of comparative advantage and how it applies to international trade.

Answer Options

Correct Answer A. Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country
B. Comparative advantage refers to a country's ability to produce a good or service at a higher opportunity cost than another country
C. Comparative advantage refers to a country's ability to produce a good or service at the same opportunity cost as another country
D. Comparative advantage refers to a country's ability to produce a good or service at a lower price than another country
Correct Answer
A
Correct Option:
Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country

About This Question

This is Post Utme Crawford University 2018 Commerce Question 24. It is one of the objective questions from the 2018 Post Utme Crawford University Commerce examination.

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