Raj Receives a Check for $100 from Sheldon

question 40

Multiple Choice

Raj receives a check for $100 from Sheldon.He signs the back of the check and turns it over to Leo to pay off the $100 he owed Leo.In this case,Raj is the ________.

• A) drawer
• B) drawee
• C) indorser
• D) indorsee

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Definitions:

Marginal Productivity Theory

An economic theory suggesting that payment to factors of production equates to their marginal contribution to the output.

Value Added

The increase in the value of a product or service as a result of a particular process, typically measured as the difference between the cost of inputs and the price it's sold for.

Profit-Maximizing

A strategy or point whereby a firm selects the output level at which its profits are at their highest.

Marginal Product

The additional output resulting from the use of one more unit of a production factor.