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

question 315

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 should export

• A) coolers and import radios.
• B) radios and import coolers.
• C) both goods and import neither good.
• D) neither good and import both goods.

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Definitions:

Determinant

A factor or condition that decisively affects the nature or outcome of something, often used in economics to discuss variables impacting demand, supply, or price.

Inputs

Resources used in the production process, including labor, capital, and materials.

Related Goods

Goods that are connected in some way, often through being complements or substitutes, affecting each other's demand and supply.

Consumer Income

The total amount of income received by consumers, including wages, salaries, benefits, and income from investments, which can influence spending patterns.