Table 3-5
Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.
-Refer to Table 3-5. Assume that Aruba and Iceland each has 80 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is
A)28 coolers and 50 radios.
B)30 coolers and 9 radios.
C)60 coolers and 18 radios.
D)120 coolers and 36 radios.

Question

Table 3-5
Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. 
-Refer to Table 3-5. Assume that Aruba and Iceland each has 80 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is
A)28 coolers and 50 radios. 
B)30 coolers and 9 radios. 
C)60 coolers and 18 radios. 
D)120 coolers and 36 radios.

Quizplus · Accepted Answer

Each country has 40 labor hours available for the production of coolers and 40 labor hours available for the production of radios. Aruba can produce 2 coolers or 5 radios per hour while Iceland can produce 3 coolers or 2 radios per hour. If each country divides their time equally between the production of coolers and radios, then Aruba can produce 40/2=20 coolers and 40/5=8 radios while Iceland can produce 40/3=13.33... or 13 coolers and 40/2=20 radios. Therefore, total production is 20+13=33 coolers and 8+20=28 radios for Aruba and Iceland combined, respectively. Thus, the best choice is C.

Table 3-5 Assume That Aruba and Iceland Can Switch Between Producing Coolers