Post Utme Veritas University 2020 Commerce Question 31

Practice objective / multiple choice question 31 from the 2020 Post Utme Veritas University Commerce examination.

Post Utme Veritas University 2020 Commerce Objective / Multiple Choice
Question 31 POST_UTME_VERITAS_UNIVERSITY • 2020 • 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 countries is likely to have a comparative advantage in producing textiles?

Answer Options

Correct Answer A. Country A, which has a large labor force and low wages
B. Country B, which has a small labor force and high wages
C. Country C, which has a large labor force and high wages
D. Country D, which has a small labor force and low wages
Correct Answer
A
Correct Option:
Country A, which has a large labor force and low wages

About This Question

This is Post Utme Veritas University 2020 Commerce Question 31. It is one of the objective questions from the 2020 Post Utme Veritas University Commerce examination.

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