Post Utme Futa 2019 Commerce Question 6

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

Post Utme Futa 2019 Commerce Objective / Multiple Choice
Question 6 POST_UTME_FUTA • 2019 • 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. What is the opportunity cost of a country that specializes in producing a good for which it has a comparative advantage?

Answer Options

Correct Answer A. The opportunity cost is the value of the next best alternative good that could have been produced.
B. The opportunity cost is the value of the next best alternative good that could have been produced, but not consumed.
C. The opportunity cost is the value of the next best alternative good that could have been produced, but not consumed, and not traded.
D. The opportunity cost is the value of the next best alternative good that could have been produced, but not consumed, and not traded, and not imported.
Correct Answer
A
Correct Option:
The opportunity cost is the value of the next best alternative good that could have been produced.

About This Question

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

View More Post Utme Futa 2019 Commerce Questions More Post Utme Futa 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