Table 3-2 Assume That Aruba and Iceland Can Switch Between Producing Coolers

question 68

Multiple Choice

Table 3-2
Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.

-Refer to Table 3-2.Aruba's opportunity cost of one cooler is

• A) 0.4 radio and Iceland's opportunity cost of one cooler is 0.25 radio.
• B) 0.4 radio and Iceland's opportunity cost of one cooler is 4 radios.
• C) 2.5 radios and Iceland's opportunity cost of one cooler is 0.25 radio.
• D) 2.5 radios and Iceland's opportunity cost of one cooler is 4 radios.

---

Definitions:

Current Year

The ongoing year according to the Gregorian calendar, continuously updating as time progresses.

Paasche Price Index

A price index that measures the price changes between the current and base period by using the current period quantities as weights.

Doggerel

Doggerel denotes poorly written verse, often characterized by its triviality or nonsensical content.

Paasche Price Index

A price index that measures the change in the purchasing power of a basket of goods and services, using the current period consumption pattern as the weight.