Suppose the United States and Japan each produce only two goods and have the production possibilities shown in Figure 17.1.Without trade,Japan produces at point A and the United States produces at point B.Use the figure to answer the question(s)below.
-If the countries are at points A and B in Figure 17.1 and do not trade,what is the total number of motorcycles produced per day?

Question

Suppose the United States and Japan each produce only two goods and have the production possibilities shown in Figure 17.1.Without trade,Japan produces at point A and the United States produces at point B.Use the figure to answer the question(s)below. 
-If the countries are at points A and B in Figure 17.1 and do not trade,what is the total number of motorcycles produced per day?

Quizplus · Accepted Answer

Without trade, Japan produces only cars at point A and produces 2,000 cars per day, while the US produces only motorcycles at point B and produces 1,000 motorcycles per day. Therefore, the total production of motorcycles and cars is 2,000 + 1,000 = 3,000 units per day.

Suppose the United States and Japan Each Produce Only Two