Final answer:
Aruba has a mixed economic system focused on tourism, with significant private sector activity and some government involvement. Tourism is the main source of economic income, and the island's economy is linked to the US through exports and remittances. Dependence on imported food is due to its limited agricultural capacity.
Step-by-step explanation:
The economic system exemplified in Aruba is a mixed economic system with a strong emphasis on tourism. Tourism dominates the economy, and hotels and restaurants are primarily privately owned, indicating a free market component. However, the government also invests significantly in attracting visitors to the island, reflecting some level of government involvement in economic activities. Aruba's economy is also marked by the dependency on the United States for exports and remittances. The island's terrain and size limit the potential for agricultural self-sufficiency, making food importation a necessity.
The Caribbean region, with its physical geography featuring beautiful coastal waters and a warm tropical climate, is a prime location for tourism, which is the number one source of economic income for many islands. With little activity in the manufacturing sector and few natural resources apart from those found in a select few island states, tourism provides a critical source of revenue but also contributes to economic disparities between tourists and local workers.