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Country M enjoys absolute advantage over country N in the production of commodities X and...

Economics
WAEC 2023

Country M enjoys absolute advantage over country N in the production of commodities X and Y, if country M

  • A. is inefficient in the production of both commodities X and Y
  • B. is more efficient than country N in producing both commodities X and Y
  • C. can produce only commodity Y cheaper than country N
  • D. and country N are efficient in the production of both goods
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Correct Answer: Option B
Explanation

Country M enjoys absolute advantage over country N in the production of commodities X and Y if country M is more efficient than country N in producing both commodities X and Y.

Absolute advantage refers to the ability of a country to produce a good or service using fewer resources than another country. In this case, country M is able to produce both commodities X and Y using fewer resources than country N. This means that country M can produce more of both commodities with the same amount of resources, or it can produce the same amount of both commodities with fewer resources.


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WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709