If, When You Consume Another Piece of Candy, Your Marginal

question 203

Multiple Choice

If, when you consume another piece of candy, your marginal utility is zero, then

• A)you want more candy.
• B)you have maximized your total utility from consuming candy.
• C)you have not yet reached the point of diminishing marginal utility.
• D)you should consume less candy.

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Definitions:

Yield To Maturity

The total expected return on a bond if held to its maturity date, taking into account both interest payments and capital gains or losses.

Premium

The amount paid for an insurance policy or an additional amount above the nominal or face value of securities.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The expected complete return on a bond when retained through its entire lifespan.