A Speculative Bubble Is When

question 194

Multiple Choice

A speculative bubble is when:

• A) assets are priced much higher than is warranted by the profitability of the assets.
• B) assets are priced much lower than is warranted by the profitability of the assets.
• C) assets prices are high and profits are even higher.
• D) market manipulation by dominant hedge funds bids up the market prices of assets.

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Definitions:

Great Violence

Intense or extreme physical force used to harm others or cause destruction, often associated with aggression or conflict.

Outgroup Homogeneity Bias

Outgroup Homogeneity Bias is the tendency to view individuals from outside one’s own group as more similar to each other than those within the group, leading to stereotypical thinking.

Group Attribution Error

The tendency to make broad stereotypical judgments about a group based on the actions of a few individuals within that group.

Ultimate Attribution Error

A bias in which negative behaviors by out-group members are attributed to their character, while similar actions by in-group members are attributed to situational factors.