If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?
ECONOMICS
JAMB 2016
If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?
- A. Nigeria produces cocoa more cheaply than Ghana
- B. Nigeria and Ghana produce at the same level
- C. Ghana produces cocoa more than Nigeria
- D. Nigeria produces more cocoa than Ghana
Correct Answer: A. Nigeria produces cocoa more cheaply than Ghana
Explanation
comparative advantage is the ability of an individual or group (Nigeria as the case maybe) to carry out a particular economic activity (such as making a specific product) more efficiently than another activity. Comparative advantage is when a country produces a good or service for a lower opportunity cost than other countries.
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