Post Utme Madonna University 2020 Economics Question 10

Practice objective / multiple choice question 10 from the 2020 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2020 Economics Objective / Multiple Choice
Question 10 POST_UTME_MADONNA_UNIVERSITY • 2020 • ECONOMICS • objective

The concept of comparative advantage in international trade theory suggests that countries should specialize in producing goods for which they have a lower opportunity \cost. Which of the following statements best describes the relationship between comparative advantage and the gains from trade?

Answer Options

A. Comparative advantage and the gains from trade are mutually exclusive concepts.
B. Comparative advantage and the gains from trade are related, but not directly equivalent.
Correct Answer C. Comparative advantage is a necessary condition for the gains from trade.
D. The gains from trade are a necessary condition for comparative advantage.
Correct Answer
C
Correct Option:
Comparative advantage is a necessary condition for the gains from trade.

About This Question

This is Post Utme Madonna University 2020 Economics Question 10. It is one of the objective questions from the 2020 Post Utme Madonna University Economics examination.

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