The Prices of Short-Term Bonds Are Commonly ____ Those of Long-Term

question 2

Multiple Choice

The prices of short-term bonds are commonly ____ those of long-term bonds.

• A) more volatile than
• B) equally volatile as
• C) less volatile than
• D) A and C occur with about equal frequency

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service.

Marginal Revenue

The increase in total revenue resulting from the sale of one additional unit of a product or service.

Value of the Marginal Product

The additional revenue a firm generates from employing one more unit of input, keeping other inputs constant.

Marginal Productivity

The additional output generated by adding one more unit of a specific input, while holding all other inputs constant.