Comparative costs - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1993

Comparative advantage implies that a country will specialize in producing the commodity?

A. With the highest opprotunity cost
B. For which output per worker is lower than in other countries
C. With the lowest opportunity cost
D. For which output per worker is the same with those of other countries

Question 7:

• JAMB 2005

Applying the law of comparative costs, how many units of groundnuts will Nigeria produce?

A. 7000 units
B. 16000 units
C. 9000 units
D. 8000 units

Question 8:

• JAMB 2009

According to the theory of comparative advantage specialization will result in

A. Labour-intensive method of production
B. Capital-intensive method of production
C. Efficient allocation of resources
D. Efficient distribution of output

Question 9:

• JAMB 2021

Use the table below to answer the question below;
The international production set for Nigeria and Austria is;

Products	Nigeria	Austria
Cocoa	20 tonnes	12 tonnes
Lace	1o metres	8 metres

From the table, it can be deduced that ____________

A. Nigeria should produce cocoa and lace
B. Nigeria can benefit from producing lace only
C. Austria should produce lace and Nigeria should produce cocoa
D. Austria should produce cocoa and lace

Question 10:

• JAMB 2021

Use the table below to answer the question below;
The international production set for Nigeria and Austria is;

Products	Nigeria	Austria
Cocoa	20 tonnes	12 tonnes
Lace	1o metres	8 metres

The Opportunity cost ratio for cocoa and lace Tor Austria and Nigeria is ____________

A. 1.5:2
B. 2:2
C. 2:1.5
D. 0.5:1.5