Jacob Benito Runs a Business Based in Norway That Sells

question 12

Multiple Choice

Jacob Benito runs a business based in Norway that sells the steel used in hockey blades.Jacob sold $50 000 worth of steel to Wayne Lemieux of Canada on August 8,2006.The two parties agreed that the $50 000 would not be due until October 8,2006 and Wayne arranged for the payment to be made through his line of credit at ABC Trust Company.Which of the following is true?

• A)Jacob is the payee,Wayne is the drawer,and ABC is the drawee.
• B)Jacob is the drawee,Wayne is the drawer,and ABC is the payee.
• C)Jacob is the drawee,Wayne is the payee,and ABC is the drawer.
• D)Jacob is the payee,Wayne is the drawee,and ABC is the drawer.
• E)Jacob is the payee,Wayne is the drawee,and ABC is the other payee.

Distinguish between increasing, constant, and decreasing returns to scale in production.

Make connections between the slope of isoquants, marginal products of inputs, and the law of diminishing marginal productivity.

Apply knowledge of production economics to real-world examples and case studies.

Understand the conceptual differences between short-run and long-run production functions and returns to scale.

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Definitions:

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and taxes.

Accrual-Based

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Mutual Ownership

A form of ownership where an institution, such as a mutual insurance company or building society, is owned by its members or policyholders.

Direct Control

The ability of an entity to influence the operations and financial decisions of another entity directly, often through ownership of voting shares.