Post Utme Veritas University 2018 Commerce Question 16

Practice objective / multiple choice question 16 from the 2018 Post Utme Veritas University Commerce examination.

Post Utme Veritas University 2018 Commerce Objective / Multiple Choice
Question 16 POST_UTME_VERITAS_UNIVERSITY • 2018 • 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 compared to other countries. Which of the following is a correct example of comparative advantage?

Answer Options

A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Correct Answer B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Correct Answer
B
Correct Option:
Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.

About This Question

This is Post Utme Veritas University 2018 Commerce Question 16. It is one of the objective questions from the 2018 Post Utme Veritas University Commerce examination.

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