17 If Japan splits their labor hours evenly between TVs and

17. If Japan splits their labor hours evenly between TVs and cellphones, which point on the production possibilities frontier represents their final allocation of goods? TVs Japan 20000 PPF Cellphones 30000 18. If Japan instead specializes in their comparative advantage and trades 10000 TVs for 20000 cellphones, which point on their consumption possibilities frontier represents their final allocation of goods? TVs Japan 20000 B CPF PPF Cellphones 30000 40000

Solution

Answer 17. Point B

If Japan evenly evenly divides its resources and time , it would end up at point B producing 10000 TVs and 15000 cellphones.

Answer 18 . Point C

The point on the final CPF line would be C, which would study the given condition.