"The farmer lives on a farm."
Translation:De boer woont op een boerderij.
The definition of leven is: 1. lichamelijk en geestelijk functioneren tijdens je leven 2. er zijn
Meaning being "alive" in the state of liveliness or just existing, not actually residing which wonen tends more to mean.
Or to put it simply: leven = to live, to exist, wonen = to reside. Unlike English you cannot use leven for the location someone is residing (like this sentence), but there are sentences where both can be used (resulting in a slightly different meaning), e.g. de man woont alleen/de man leeft alleen (the man lives alone).
Nope. I'm Dutch and we often just say we live as in 'leven' somewhere. 'Wonen' is the best translation but not the only one. Your answer should have been correct as well.