JAMB - Economics (2016 - No. 23)
If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?
Nigeria produces cocoa more cheaply than Ghana
Nigeria and Ghana produce at the same level
Ghana produces cocoa more than Nigeria
Nigeria produces more cocoa than Ghana
Wyjaśnienie
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.