APICS Exam CLTD Topic 6 Question 82 Discussion

Actual exam question for APICS's CLTD exam

Question #: 82
Topic #: 6

[All CLTD Questions]

According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?

AThe exporting country produces the product utilizing less labor than other countries.

BThe exporting country's wage rate in producing the good is lower than in other countries.

CThe exporting country's productivity is higher in producing the good than the productivity of other countries.

DThe exporting country's cost of producing the good, relative to other goods, is at least as low as in other countries.

Show Suggested Answer

Suggested Answer: B

by Callie at Jul 09, 2024, 09:07 PM

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8 days ago

Option D sounds about right. Comparative advantage is all about relative costs, not just low wages or high productivity.

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13 days ago

But doesn't comparative advantage focus on productivity rather than labor?

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18 days ago

I disagree, I believe it's A.

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20 days ago

I think the answer is C.

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