Speculators Reduce Price Swings for Goods, Increasing Society's Welfare

question 203

True/False

Speculators reduce price swings for goods, increasing society's welfare.

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Definitions:

Deindividuation

A concept in social psychology that refers to the loss of self-awareness and individual accountability in groups, which can lead to disinhibited and sometimes antisocial behavior.

Overstimulation

A condition arising from excessive stimuli or sensory input, leading to feelings of overwhelm or decreased functioning.

Physical Arousal

A physiological state of heightened activation or readiness of the body's systems, often triggered by emotion, exercise, or stimulation.

Stoner Experiment

A study on group decision-making that found individuals in groups tend to make riskier decisions compared to choices made individually, also known as the "risky shift" phenomenon.