Post Utme Redeemers University 2023 Commerce Question 38

Practice objective / multiple choice question 38 from the 2023 Post Utme Redeemers University Commerce examination.

Post Utme Redeemers University 2023 Commerce Objective / Multiple Choice
Question 38 POST_UTME_REDEEMERS_UNIVERSITY • 2023 • COMMERCE • objective

The concept of comparative advantage is used to explain why countries trade with each other. Which of the following is a correct statement about comparative advantage?

Answer Options

Correct Answer A. A country has a comparative advantage in producing a good if it can produce it at a lower opportunity cost than another country
B. A country has a comparative advantage in producing a good if it can produce it at a higher opportunity cost than another country
C. A country has a comparative advantage in producing a good if it can produce it at the same opportunity cost as another country
D. A country has a comparative advantage in producing a good if it can produce it at a higher price than another country
Correct Answer
A
Correct Option:
A country has a comparative advantage in producing a good if it can produce it at a lower opportunity cost than another country

About This Question

This is Post Utme Redeemers University 2023 Commerce Question 38. It is one of the objective questions from the 2023 Post Utme Redeemers University Commerce examination.

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