Post Utme Veritas University 2017 Economics Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2017 Economics Objective / Multiple Choice
Question 6 POST_UTME_VERITAS_UNIVERSITY • 2017 • ECONOMICS • objective

The concept of comparative advantage in international trade suggests 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. Nigeria should produce more textiles because it has a larger labor force.
B. Nigeria should produce more agricultural products because it has a more favorable climate.
Correct Answer C. Nigeria should produce goods for which it has a lower opportunity \cost compared to another country.
D. Nigeria should import goods from other countries because it lacks the necessary resources.
Correct Answer
C
Correct Option:
Nigeria should produce goods for which it has a lower opportunity \cost compared to another country.

About This Question

This is Post Utme Veritas University 2017 Economics Question 6. It is one of the objective questions from the 2017 Post Utme Veritas University Economics examination.

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