If the Two Countries Are at Points a and B

question 42

Multiple Choice

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.

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Definitions:

Novation

The substitution, by mutual agreement, of another party for one of the original parties to a contract.

Liability

The state of being legally responsible for something, particularly in terms of debts or legal obligations.

Certificate of Authority

An official document granting a company the right to do business in a jurisdiction beyond where it was originally incorporated.