Post Utme Summit University 2024 Commerce Question 6

Practice objective / multiple choice question 6 from the 2024 Post Utme Summit University Commerce examination.

Post Utme Summit University 2024 Commerce Objective / Multiple Choice
Question 6 POST_UTME_SUMMIT_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 statements best describes the opportunity cost of a country that specializes in producing a good?

Answer Options

Correct Answer A. The opportunity cost is the value of the next best alternative good that could have been produced with the same resources.
B. The opportunity cost is the value of the next best alternative good that could have been produced with the same resources, but in a different time period.
C. The opportunity cost is the value of the next best alternative good that could have been produced with the same resources, but in a different location.
D. The opportunity cost is the value of the next best alternative good that could have been produced with the same resources, but in a different industry.
Correct Answer
A
Correct Option:
The opportunity cost is the value of the next best alternative good that could have been produced with the same resources.

About This Question

This is Post Utme Summit University 2024 Commerce Question 6. It is one of the objective questions from the 2024 Post Utme Summit University Commerce examination.

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