Which of the Following Would Be Most Likely to Earn

question 50

Multiple Choice

Which of the following would be most likely to earn an AAA rating from Standard & Poor's?

• A) A 30-year bond issued by the U.S. Treasury
• B) A bond issue by a new vegetarian fast-food chain
• C) A 10-year bond issued by a state or municipality
• D) Shares of stock in Coca-Cola

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is a critical factor in decision-making for firms in competitive markets.

Total Revenue

The overall amount of money generated by a company from its business activities, usually from the sale of goods or services, before any costs or expenses are deducted.

Output Rising

A situation where the production of goods and services in an economy increases over a certain period.

Optimal Efficiency

The most advantageous level of efficiency where resources are utilized in a way that maximizes output or benefits without waste.