Post Utme Oau 2025 Commerce Question 20

Practice objective / multiple choice question 20 from the 2025 Post Utme Oau Commerce examination.

Post Utme Oau 2025 Commerce Objective / Multiple Choice
Question 20 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 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 100 units of good Z.
C. 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 W.
D. 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 V.
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 100 units of good Z.

About This Question

This is Post Utme Oau 2025 Commerce Question 20. It is one of the objective questions from the 2025 Post Utme Oau Commerce examination.

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