Post Utme Lautech 2023 Economics Question 25

Practice objective / multiple choice question 25 from the 2023 Post Utme Lautech Economics examination.

Post Utme Lautech 2023 Economics Objective / Multiple Choice
Question 25 POST_UTME_LAUTECH • 2023 • ECONOMICS • objective

A country is experiencing a trade deficit due to a large imbalance in its trade with another country. U\sing the concept of comparative advantage, explain why the country should focus on increa\sing its exports rather than trying to reduce its imports.

Answer Options

Correct Answer A. The country should focus on increa\sing its exports because it has a comparative advantage in producing goods that are in high demand.
B. The country should focus on reducing its imports because it has a comparative disadvantage in producing goods that are in high demand.
C. The country should focus on increa\sing its exports because it has a comparative disadvantage in producing goods that are in high demand.
D. The country should focus on reducing its imports because it has a comparative advantage in producing goods that are in high demand.
Correct Answer
A
Correct Option:
The country should focus on increa\sing its exports because it has a comparative advantage in producing goods that are in high demand.

About This Question

This is Post Utme Lautech 2023 Economics Question 25. It is one of the objective questions from the 2023 Post Utme Lautech Economics examination.

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