Reference: Ref 2-6 (Table: Production Possibilities for Kenya and Sri

question 100

Multiple Choice

Reference: Ref 2-6 (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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