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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Amie

10 days ago

Wait, so does this mean I can't just undercut everyone on wages and call it a day? Darn, there goes my get-rich-quick scheme.

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Kimberlie

12 days ago

Haha, this question is a classic 'trick' one. All the options seem plausible, but D is the only one that fully captures the essence of comparative advantage.

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Marisha

13 days ago

I was leaning towards B, but now I'm not so sure. Maybe I need to review the textbook again.

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Tayna

15 days ago

I'm pretty sure it's C. Productivity is the key factor in determining comparative advantage, right?

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Malcolm

2 months ago

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

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Shalon

9 days ago

That makes sense. It's not just about low wages or high productivity.

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Selene

16 days ago

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

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Daron

21 days ago

Yes, I agree. It's all about the relative cost of producing the good.

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Carrol

29 days ago

A) The exporting country produces the product utilizing less labor than other countries.

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Ryann

1 months ago

I think option D is the correct answer.

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Antonio

2 months ago

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

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Johnson

2 months ago

I disagree, I believe it's A.

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Antonio

2 months ago

I think the answer is C.

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