Question 6
POST_UTME_UNIBEN
•
2023
•
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 80 units of good X and 70 units of good Y.
B.
Country A produces 100 units of good X and 50 units of good Y, while Country B produces 120 units of good X and 40 units of good Y.
Correct Answer
C.
Country A produces 100 units of good X and 50 units of good Y, while Country B produces 80 units of good X and 70 units of good Y, but Country A has a lower opportunity cost of producing good X.
D.
Country A produces 100 units of good X and 50 units of good Y, while Country B produces 120 units of good X and 40 units of good Y, but Country B has a lower opportunity cost of producing good Y.
Correct Answer
C
Correct Option:
Country A produces 100 units of good X and 50 units of good Y, while Country B produces 80 units of good X and 70 units of good Y, but Country A has a lower opportunity cost of producing good X.
About This Question
This is
Post Utme Uniben
2023
Commerce
Question 6.
It is one of the
objective
questions from the
2023
Post Utme Uniben
Commerce
examination.