WAEC Economics 2020 Objective — Question 46

Question 46 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.

The principle of comparative advantage encourages a country to

A. produce only consumer goods
B. engage in trade if it can produce a commodity at a lower costCorrect
C. specialize in the production of all goods sufficient for its needs
D. try as much as possible to be self-sufficient

Explanation

The principle of comparative advantage states that a country should specialize in and trade goods it can produce at a relatively lower opportunity cost compared to other countries.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Economics 2020 Objective More Economics past papers