Post Utme Nile University 2024 Commerce Question 11

Practice objective / multiple choice question 11 from the 2024 Post Utme Nile University Commerce examination.

Post Utme Nile University 2024 Commerce Objective / Multiple Choice
Question 11 POST_UTME_NILE_UNIVERSITY • 2024 • 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. Which of the following is a correct example of comparative advantage?

Answer Options

A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
Correct Answer B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
Correct Answer
B
Correct Option:
Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.

About This Question

This is Post Utme Nile University 2024 Commerce Question 11. It is one of the objective questions from the 2024 Post Utme Nile University Commerce examination.

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