-A Farmer Has 100 Acres of Land on Which He

question 301

Multiple Choice

-A farmer has 100 acres of land on which he can grow soybeans or corn. An acre of land yields 200 bushels of soybeans or 100 bushels of corn. The above figure refers to the farmer's

• A) production possibilities curve.
• B) substitution options curve.
• C) demand curve.
• D) opportunity cost curve.

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to its customers.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

Draft Payable

A document instructing the payment of a specified amount of money, typically used in international trade.

Negotiability

The quality of a document (such as a check or note) signifying it can be transferred to another holder, who then has the legal right to enforce it.