Post Utme Uniport 2019 Economics Question 16

Practice objective / multiple choice question 16 from the 2019 Post Utme Uniport Economics examination.

Post Utme Uniport 2019 Economics Objective / Multiple Choice
Question 16 POST_UTME_UNIPORT • 2019 • ECONOMICS • objective

Consider a country with a comparative advantage in producing wheat. If the country's production of wheat increases by 20% due to an improvement in techno\logy, and the world price of wheat remains cons\tant, what will be the effect on the country's terms of trade?

Answer Options

A. The country's terms of trade will worsen.
Correct Answer B. The country's terms of trade will improve.
C. The country's terms of trade will remain unchanged.
D. The effect on the country's terms of trade is ambiguous.
Correct Answer
B
Correct Option:
The country's terms of trade will improve.

About This Question

This is Post Utme Uniport 2019 Economics Question 16. It is one of the objective questions from the 2019 Post Utme Uniport Economics examination.

View More Post Utme Uniport 2019 Economics Questions More Post Utme Uniport Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support