Post Utme Nile University 2020 Commerce Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Nile University Commerce examination.

Post Utme Nile University 2020 Commerce Objective / Multiple Choice
Question 36 POST_UTME_NILE_UNIVERSITY • 2020 • COMMERCE • objective

The concept of comparative advantage in international trade suggests that a country should specialize in producing goods for which it has a lower opportunity cost compared to another country. Which of the following is a correct example of comparative advantage?

Answer Options

A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
C. Country A produces 100 units of wheat and 100 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
Correct Answer D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Correct Answer
D
Correct Option:
Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.

About This Question

This is Post Utme Nile University 2020 Commerce Question 36. It is one of the objective questions from the 2020 Post Utme Nile University Commerce examination.

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