WAEC Economics 2017 Objective — Question 45

Question 45 of 50 from the West African Examinations Council (WAEC) Economics 2017 Objective paper, with the correct answer and a full explanation.

Modern international trade is based on the principle of

A. A. absolute cost advantage
B. B. comparative cost advantageCorrect
C. C. terms of trade
D. D. balance of trade

Explanation

African countries are unevenly developed, this leaves a huge gap in the economic integration, which is why modern international trade is based on the principle of comparative cost advantage.

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