Microeconomics

Iowa has a comparative advantage in the production of corn

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then

Complements

If a consumer always drinks coffee with creamer, then for that consumer coffee and creamer are examples of

None of the above is correct.

In a competitive market, the price of a product

Argentina should produce coffee

Assume that Argentina has a comparative advantage in coffee and Algeria has a comparative advantage in tobacco. Additionally, Argentina has an absolute advantage in both coffee and tobacco. If these two countries specialize and trade so as to maximize the benefits of specialization and trade, then

On the production possibilities frontier

Production is efficient if the economy is producing at a point

80 dryers and 0 washers

Refer to Figure 1. If this economy devotes all of its resources to the production of dryers, then it will produce

C

Refer to Figure 1. It is not possible for this economy to produce at point

60 dryers and 50 washers

Refer to Figure 1. It is possible for this economy to produce

1 dryer

Refer to Figure 1. What is the opportunity cost of producing an additional washer, when the economy moves from point A to point B?

An increase in the quantity demanded of bikes

The law of demand states that, other things remaining the same, a decrease in the price of bikes leads to

Normal good

You lose your job and, as a result, you buy fewer iTunes music downloads. This shows that you consider iTunes music downloads to be a(n)