Butter and margarine can function as complements for each other.
a. true
b. false
Ans: b. false
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Refer to Figure 13.1. Assume the voting method used to select a location for the recreation center is the Borda-count method, where if a town gets ranked #1, it gets 3 points, a town ranked #2 gets 2 points,
a town ranked #3 gets 1 point, and a town ranked #4 gets no points. With this method, the town that gets the least number of points is A) Desert Sands. B) Glacier Cove. C) Mountain View. D) Oceanside.
Which of the following is NOT a proposition of the Heckscher-Ohlin model?
A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource. B) The effect of international trade is to tend to equalize factor prices between the trading nations. C) If Mexico is an unskilled labor abundant country, then Mexico has a comparative advantage in the production of goods that use unskilled labor more intensively. D) If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. E) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur.