Post Utme Ims U 2021 Commerce Question 21

Practice objective / multiple choice question 21 from the 2021 Post Utme Ims U Commerce examination.

Post Utme Ims U 2021 Commerce Objective / Multiple Choice
Question 21 POST_UTME_IMS_U • 2021 • 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

Correct Answer A. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative advantage in producing wheat.
B. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative disadvantage in producing wheat.
C. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative advantage in producing rice.
D. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has no comparative advantage in producing either wheat or rice.
Correct Answer
A
Correct Option:
A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative advantage in producing wheat.

About This Question

This is Post Utme Ims U 2021 Commerce Question 21. It is one of the objective questions from the 2021 Post Utme Ims U Commerce examination.

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