Neco 2025 Economics Question 42
Practice objective / multiple choice question 42 from the 2025 Neco Economics examination.
Country A can produce either 100 units of wheat or 50 units of cloth per labour hour. Country B can produce either 80 units of wheat or 80 units of cloth per labour hour.\n(a) Identify which country has a comparative advantage in wheat and which in cloth.\n(b) Express the range of mutually beneficial terms of trade (in wheat per cloth) if the two countries specialize and trade.\n(c) If Country A trades 30 units of cloth for wheat at a term of trade of 1.2 wheat per cloth, calculate the maximum gain in wheat units that Country A can achieve compared with producing cloth domestically.
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About This Question
This is Neco 2025 Economics Question 42. It is one of the objective questions from the 2025 Neco Economics examination.
Difficulty level: Medium .
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