Refer to the Diagram Below

question 240

Multiple Choice

Refer to the diagram below.Points A, B, C, D, and E show:

• A)that the opportunity cost of bicycles increases, while that of computers is constant.
• B)combinations of bicycles and computers which society can produce by using its resources efficiently.
• C)that the opportunity cost of computers increases, while that of bicycles is constant.
• D)that society's demand for computers is greater than its demand for bicycles.

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Maker

In terms of financial instruments, the maker is the party that creates or issues the instrument, such as a check or promissory note.

Payee

The party in a financial transaction who receives payment.

Note Receivable

A written promise that entitles the holder to receive a specified amount of money from another party at a future date.