Post Utme Oau 2025 Commerce Question 11

Practice objective / multiple choice question 11 from the 2025 Post Utme Oau Commerce examination.

Post Utme Oau 2025 Commerce Objective / Multiple Choice
Question 11 POST_UTME_OAU • 2025 • 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 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 150 units of cloth.
Correct Answer C. 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.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Correct Answer
C
Correct Option:
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.

About This Question

This is Post Utme Oau 2025 Commerce Question 11. It is one of the objective questions from the 2025 Post Utme Oau Commerce examination.

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