One Difference Between Stocks and Bonds Is That

question 168

Multiple Choice

One difference between stocks and bonds is that

• A)stocks are financial securities,while bonds are labor market securities.
• B)stocks are usually issued in electronic form,while bonds are usually issued in paper form.
• C)stocks represent ownership in companies,while bonds represent ownership in banks.
• D)stocks do not involve a promise to repay a purchaser of the stock,while bonds represent a promise to repay the purchase price of the bond.

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Definitions:

Marginal Cost

The increased expenditure resulting from manufacturing one more unit of a good or service.

Declining

A term describing a situation where a certain quantity or quality is decreasing over time.

Marginal Cost

The additional expense associated with manufacturing one more unit of a specific item.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus.