JAMB Economics 2022 Objective — Question 11

Question 11 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2022 Objective paper, with the correct answer and a full explanation.

11. International trade is necessary because

A. (A) no country can live in economic isolation
B. (B) different countries are differently endowed with natural and man-made resources
C. (C) some countries have comparative cost advantage in the production of particular commodities over other countriesCorrect
D. (D) the world demand for and supply of various categories of commodities is expanding very fast

Explanation

The principle of comparative cost advantage — that countries are relatively more efficient at producing certain goods — necessitates the need for international trade.

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