Post Utme Igbinedion University 2018 Commerce Question 36

Practice objective / multiple choice question 36 from the 2018 Post Utme Igbinedion University Commerce examination.

Post Utme Igbinedion University 2018 Commerce Objective / Multiple Choice
Question 36 POST_UTME_IGBINEDION_UNIVERSITY • 2018 • 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 compared to other countries. Which of the following is a correct example of comparative advantage?

Answer Options

A. Nigeria producing cotton and importing textiles
Correct Answer B. Nigeria producing textiles and importing cotton
C. Nigeria producing both cotton and textiles
D. Nigeria producing neither cotton nor textiles
Correct Answer
B
Correct Option:
Nigeria producing textiles and importing cotton

About This Question

This is Post Utme Igbinedion University 2018 Commerce Question 36. It is one of the objective questions from the 2018 Post Utme Igbinedion University Commerce examination.

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