When They Guess Correctly About Price Movements, Speculators

question 29

Multiple Choice

When they guess correctly about price movements, speculators:

• A) move goods from periods of low-use value to periods of high-use value, making society better off.
• B) cause a misallocation of resources by taking resources away from consumers who value them the most.
• C) profit at the expense of society, making everyone worse off.
• D) cause high price volatility.

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Definitions:

Sebaceous Gland

A type of exocrine gland in the skin that secretes sebum, an oily substance, into hair follicles to lubricate and waterproof the skin and hair.

Epidermis

The outermost layer of skin, providing a protective barrier.

Collagen

A protein that provides structure and strength to connective tissues, such as skin, tendons, and ligaments.

Lunula

The visible part of the nail root, appearing as a whitish crescent shape at the base of the fingernail or toenail.