A Body at Rest in a System Is Capable of Doing

question 63

Multiple Choice

A body at rest in a system is capable of doing work if:

• A)the potential energy of the system is positive
• B)the potential energy of the system is is negative
• C)it is free to move in such a way as to decrease its kinetic energy
• D)it is free to move in such a way as to decrease the potential energy of the system
• E)it is free to move in such a way as to increase the potential energy of the system

Grasp the tax implications of corporate bond interest and dividends.

Understand how the carrying value of bonds changes over time and what it equals at maturity.

Know the characteristics and types of securities that companies with good credit ratings are likely to use.

Understand the process and implications of early redemption of bonds, including the computation of gain or loss.

---

Definitions:

Long-Run Average Total Cost Curve

A graphical representation that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Output

Output refers to the amount of goods or services produced by a firm or economy within a certain period.

Physical Capital

Consists of tangible, man-made objects that a business uses to produce goods or services, such as buildings, machinery, and equipment.

Short Run

A period in economics where at least one factor of production is fixed, limiting the ability of the economy or firm to adjust to changes in demand or supply.