What Is a Bond

question 104

Multiple Choice

What is a bond?

• A) a financial intermediary
• B) a certificate of indebtedness
• C) a certificate of partial ownership in an enterprise
• D) a mortgage

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Definitions:

Short-Run Average Total Cost Curve

A graphical representation that shows the average total cost of producing different levels of output in the short run, when at least one input is fixed.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.

Output

The quantity of products or services generated by an enterprise, sector, or economic system.

Physical Capital

Assets used in the production process that are physical in nature, such as buildings, machinery, and equipment.