Table 3-5 Assume That Aruba and Iceland Can Switch Between Producing Coolers

question 255

Multiple Choice

Table 3-5
Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.
-Refer to Table 3-5. Assume that Aruba and Iceland each has 80 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is

• A)28 coolers and 50 radios.
• B)30 coolers and 9 radios.
• C)60 coolers and 18 radios.
• D)120 coolers and 36 radios.

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Definitions:

Output

The total amount of goods or services produced by a business, industry, or economy in a given period.

Price

The amount of money expected, required, or given in payment for something, reflecting its value or worth.

Marginal Revenue Product Schedule

A table or representation showing how the marginal revenue product of a factor of production varies as its quantity employed changes.

Land

In economics, land encompasses all natural resources used to produce goods and services, including not just agricultural land but also minerals, forests, and water.