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

question 9

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, which of the following answers identifies a trade price that both countries would find acceptable? (Units are in tons.)

• A) 0.5 bean for one tea < Trade price < two teas for one bean
• B) 0.5 bean for one tea < Trade price < three beans for one tea
• C) two teas for one bean < Trade price < three teas for one bean
• D) 0.3 bean for one tea < Trade price < two beans for one tea

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Definitions:

Mortgage Loan

A loan secured by the collateral of real estate property, where the borrower is obliged to pay back with a predetermined set of payments.

Personal Guaranty

A legal commitment by an individual to repay a loan or debt in the event that the primary borrower defaults.

Main Purpose Rule

A legal principle that exempts a guarantor from the requirement of a written contract if the primary intent of the guarantee is to serve the guarantor's own interests.

Debtor

An individual or entity that owes money to another party.