JAMB Economics 2009 Objective — Question 35

Question 35 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2009 Objective paper, with the correct answer and a full explanation.

According to the theory of comparative advantage, specialization will result in

A. a labor-intensive method of production
B. a capital-intensive method of production
C. efficient allocation of resourcesCorrect
D. efficient distribution of output

Explanation

Comparative advantage advocates that country should produce a good which it can produce with a lower opportunity cost. This will lead to efficient allocation of resources.

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