Post Utme Greenfield University 2019 Commerce Question 16

Practice objective / multiple choice question 16 from the 2019 Post Utme Greenfield University Commerce examination.

Post Utme Greenfield University 2019 Commerce Objective / Multiple Choice
Question 16 POST_UTME_GREENFIELD_UNIVERSITY • 2019 • COMMERCE • objective

The concept of specialization in production 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

A. By exporting the good at a lower price than other countries, the country can increase its revenue and stimulate economic growth.
Correct Answer B. By specializing in the production of the good, the country can reduce its production costs and increase its competitiveness in the global market.
C. By focusing on the production of the good, the country can develop its human capital and improve its productivity.
D. By specializing in the production of the good, the country can increase its trade deficit and reduce its economic growth.
Correct Answer
B
Correct Option:
By specializing in the production of the good, the country can reduce its production costs and increase its competitiveness in the global market.

About This Question

This is Post Utme Greenfield University 2019 Commerce Question 16. It is one of the objective questions from the 2019 Post Utme Greenfield University Commerce examination.

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