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

question 402

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 and Iceland would not be able to gain from trade if Iceland's opportunity cost of one radio changed to

• A) 0 coolers.
• B) 0.25 coolers.
• C) 2.5 coolers.
• D) Aruba and Iceland can always gain from trade regardless of their opportunity costs.

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