Post Utme Wellspring University 2022 Commerce Question 31

Practice objective / multiple choice question 31 from the 2022 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2022 Commerce Objective / Multiple Choice
Question 31 POST_UTME_WELLSPRING_UNIVERSITY • 2022 • COMMERCE • objective

The concept of comparative advantage in international trade suggests that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?

Answer Options

A. Nigeria specializes in producing cotton for export to the United States.
Correct Answer B. The United States specializes in producing cotton for export to Nigeria.
C. Nigeria specializes in producing cars for export to the United Kingdom.
D. The United Kingdom specializes in producing cars for export to Nigeria.
Correct Answer
B
Correct Option:
The United States specializes in producing cotton for export to Nigeria.

About This Question

This is Post Utme Wellspring University 2022 Commerce Question 31. It is one of the objective questions from the 2022 Post Utme Wellspring University Commerce examination.

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