Post Utme Unn 2023 Commerce Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Unn Commerce examination.

Post Utme Unn 2023 Commerce Objective / Multiple Choice
Question 36 POST_UTME_UNN • 2023 • COMMERCE • objective

The concept of comparative advantage in international trade is based on the idea that a country should specialize in producing goods for which it has a lower opportunity cost compared to another country. 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 50 units of good X and 100 units of good Y.
Correct Answer B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 50 units of good Y, while Country B produces 100 units of good X and 100 units of good Y.
Correct Answer
B
Correct Option:
Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.

About This Question

This is Post Utme Unn 2023 Commerce Question 36. It is one of the objective questions from the 2023 Post Utme Unn Commerce examination.

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