If the two countries are at points A and B in Figure 35.1 and do not trade, what is the total number of motorcycles produced per year?
A) 1,000.
B) 2,000.
C) 3,000.
D) 4,000.

Question

If the two countries are at points A and B in Figure 35.1 and do not trade, what is the total number of motorcycles produced per year?
A) 1,000. 
B) 2,000. 
C) 3,000. 
D) 4,000.

Quizplus · Accepted Answer

Point A represents 2,000 cars and 1,000 motorcycles, while point B represents 1,000 cars and 2,000 motorcycles. If the two countries do not trade, then each country will produce and consume its own motorcycles. Therefore, the total number of motorcycles produced per year is the sum of the motorcycles produced at point A (1,000) and point B (2,000), which is equal to 3,000 motorcycles.

If the Two Countries Are at Points a and B