Post Utme Mountain Top University 2021 Commerce Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2021 Commerce Objective / Multiple Choice
Question 6 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2021 • COMMERCE • objective

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specialization in production, using the example of Nigeria producing cotton and importing textiles.

Answer Options

A. By producing cotton, Nigeria can save on foreign exchange and create employment opportunities.
Correct Answer B. Nigeria can benefit from economies of scale by producing cotton and importing textiles.
C. Specialization in production leads to a decrease in the overall cost of production.
D. Nigeria can increase its GDP by producing cotton and importing textiles.
Correct Answer
B
Correct Option:
Nigeria can benefit from economies of scale by producing cotton and importing textiles.

About This Question

This is Post Utme Mountain Top University 2021 Commerce Question 6. It is one of the objective questions from the 2021 Post Utme Mountain Top University Commerce examination.

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