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

-Refer to Table 3-3. Assume that Aruba and Iceland each has 120 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is
A)90 coolers and 120 radios.
B)27 coolers and 60 radios.
C)90 coolers and 27 radios.
D)27 coolers and 90 radios.

Question

Table 3-3
Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.
​
​
 
-Refer to Table 3-3. Assume that Aruba and Iceland each has 120 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is
A)90 coolers and 120 radios. 
B)27 coolers and 60 radios. 
C)90 coolers and 27 radios. 
D)27 coolers and 90 radios.

Quizplus · Accepted Answer

If each country divides its time equally between the production of coolers and radios, then each country will produce 60 coolers and 60 radios. So, the total production will be 90 coolers (60 from Aruba + 30 from Iceland) and 27 radios (60 from Aruba + 30 from Iceland).

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