Use the Following to Answer Questions: Table: Production Possibilities for Kenya

question 51

Multiple Choice

Use the following to answer questions: Table: Production Possibilities for Kenya and Sri Lanka $$\begin{array} { l c c } \hline & \text { Beans (millions of tons) } & \text { Tea (millions of tons) } \\\hline \text { Kenya } & 100 & 200 \\\text { Sri Lanka } & 150 & 450 \\\hline\end{array}$$
-(Table: Production Possibilities for Kenya and Sri Lanka) According to the table on production possibilities for Kenya and Sri Lanka, Kenya should produce ________ and Sri Lanka should produce __________.

• A) beans; tea
• B) tea; beans
• C) both goods; neither good
• D) neither good; both goods

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Definitions:

Interest Tax Shield

The tax savings achieved by deducting payable interest on debt from taxable income, thereby reducing the overall tax expense.

Deductibility

Deductibility refers to the eligibility of an expense to be subtracted from gross income to reduce taxable income, under tax regulations.