Which of the Following Is TRUE Regarding the "Food Versus

question 45

Multiple Choice

Which of the following is TRUE regarding the "food versus fuel" debate?

• A) Global biofuel supply and demand is expected to grow more than sixfold, from 12 billion to 83 billion gallons, over the next two decades.
• B) Some commodities like corn or vegetable oil can be used as food or to make biofuels.
• C) In the United States a larger percentage of the corn harvest is now made into ethanol than was the case a decade ago.
• D) Nonfood crops can also be used to produce biofuel.
• E) All of these answer are true.

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Definitions:

Heckscher-Ohlin Model

An economic theory that explains international trade in terms of differences in the relative endowments of factors of production among nations, suggesting that countries will export goods that make intensive use of locally abundant factors.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

Labor-Intensive

A term describing a process or industry that requires a large amount of labor to produce its goods or services as compared to the amount of capital required.

Comparative Advantage

The capacity of a being to generate a product or offer a service at a reduced opportunity cost in comparison to another.