Which of the Following Is True of a Foreign Draft

question 40

Multiple Choice

Which of the following is true of a foreign draft?

• A)It is drawn in one state and payable in another state.
• B)It is drawn in one nation and payable in another nation.
• C)It is drawn on one bank and payable to a governmental body.
• D)It is drawn in one city and payable in another city in the United States.

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Definitions:

Marginal Cost

The increase in costs from making an additional unit of a product or service.

Long-Run Equilibrium

A state in economics where all factors of production are fully adjustable, leading to a situation where no economic agent has an incentive to change its behavior.

Monopolistic Competition

A marketplace setup in which a wide range of companies vend products that are comparable but not clones, enabling some level of market sway.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit.