RingTone Corporation Is a Public Company Whose Securities Are Traded

question 22

Multiple Choice

RingTone Corporation is a public company whose securities are traded among investors.Under the Securities Act of 1933,a security is

• A)almost any stake in the ownership or debt of a company.
• B)an investment that is guaranteed to make a profit.
• C)only such common forms of debt and equity as bonds and stocks.
• D)whatever a company represents to the public as a security.

---

Definitions:

Total Utility

Total utility is the total satisfaction or pleasure a person derives from consuming a particular quantity of goods and services.

Marginal Utility

The change in satisfaction or utility that an individual gains from consuming an additional unit of a good or service.

Marginal Utility

The extra pleasure or benefit gained by a consumer from consuming one more unit of a product or service.

Utility Maximizing Rule

A principle in economics stating that to maximize satisfaction or utility, consumers allocate their expenditures so that the last unit of currency spent on each product provides the same level of marginal utility.