Post Utme Igbinedion University 2022 Commerce Question 16

Practice objective / multiple choice question 16 from the 2022 Post Utme Igbinedion University Commerce examination.

Post Utme Igbinedion University 2022 Commerce Objective / Multiple Choice
Question 16 POST_UTME_IGBINEDION_UNIVERSITY • 2022 • 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.
B. 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.
Correct Answer C. 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, but Country A has a lower opportunity cost for producing good X.
D. 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, but Country B has a lower opportunity cost for producing good Y.
Correct Answer
C
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 100 units of good Y, but Country A has a lower opportunity cost for producing good X.

About This Question

This is Post Utme Igbinedion University 2022 Commerce Question 16. It is one of the objective questions from the 2022 Post Utme Igbinedion University Commerce examination.

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