Question 1
POST_UTME_SKYLINE_UNIVERSITY
•
2021
•
COMMERCE
•
objective
The concept of comparative advantage in international trade is closely related to the idea of specialization. Explain how specialization leads to increased productivity and efficiency in production.
Answer Options
Correct Answer
A.
Specialization leads to increased productivity and efficiency in production because it allows firms to focus on producing a limited range of goods and services, thereby reducing costs and improving quality.
B.
Specialization leads to increased productivity and efficiency in production because it allows firms to take advantage of economies of scale and reduce their average costs.
C.
Specialization leads to increased productivity and efficiency in production because it allows firms to develop and utilize their core competencies and strengths.
D.
Specialization leads to increased productivity and efficiency in production because it allows firms to reduce their reliance on external suppliers and improve their supply chain management.
Correct Answer
A
Correct Option:
Specialization leads to increased productivity and efficiency in production because it allows firms to focus on producing a limited range of goods and services, thereby reducing costs and improving quality.
About This Question
This is
Post Utme Skyline University
2021
Commerce
Question 1.
It is one of the
objective
questions from the
2021
Post Utme Skyline University
Commerce
examination.