Post Utme Greenfield University 2017 Commerce Question 16

Practice objective / multiple choice question 16 from the 2017 Post Utme Greenfield University Commerce examination.

Post Utme Greenfield University 2017 Commerce Objective / Multiple Choice
Question 16 POST_UTME_GREENFIELD_UNIVERSITY • 2017 • COMMERCE • objective

The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?

Answer Options

A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
Correct Answer B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 50 units of good Y, while Country B produces 100 units of good X and 100 units of good Y.
Correct Answer
B
Correct Option:
Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.

About This Question

This is Post Utme Greenfield University 2017 Commerce Question 16. It is one of the objective questions from the 2017 Post Utme Greenfield University Commerce examination.

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