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 has an absolute advantage in the production of
A) coolers and Iceland has an absolute advantage in the production of radios.
B) radios and Iceland has an absolute advantage in the production of coolers.
C) both goods and Iceland has an absolute advantage in the production of neither good.
D) neither good and Iceland has an absolute advantage in the production of both goods.

Question

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 has an absolute advantage in the production of
A) coolers and Iceland has an absolute advantage in the production of radios. 
B) radios and Iceland has an absolute advantage in the production of coolers. 
C) both goods and Iceland has an absolute advantage in the production of neither good. 
D) neither good and Iceland has an absolute advantage in the production of both goods.

Quizplus · Accepted Answer

The Answer of 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 has an absolute advantage in the production of
A) coolers and Iceland has an absolute advantage in the production of radios. 
B) radios and Iceland has an absolute advantage in the production of coolers. 
C) both goods and Iceland has an absolute advantage in the production of neither good. 
D) neither good and Iceland has an absolute advantage in the production of both goods.

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