Post Utme Lautech 2018 Commerce Question 11

Practice objective / multiple choice question 11 from the 2018 Post Utme Lautech Commerce examination.

Post Utme Lautech 2018 Commerce Objective / Multiple Choice
Question 11 POST_UTME_LAUTECH • 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. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 5 units of wheat and 10 units of cloth.
Correct Answer B. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 15 units of wheat and 5 units of cloth.
C. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 5 units of wheat and 15 units of cloth.
D. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 10 units of wheat and 10 units of cloth.
Correct Answer
B
Correct Option:
Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 15 units of wheat and 5 units of cloth.

About This Question

This is Post Utme Lautech 2018 Commerce Question 11. It is one of the objective questions from the 2018 Post Utme Lautech Commerce examination.

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