Suppose That Speculators Expect That a War in the Middle

question 74

Essay

Suppose that speculators expect that a war in the Middle East is likely next year, which could cause a significant decrease in the supply of oil. a. What could the speculators do to profit from their expectation? b. What would be the possible impact of the war on the oil market without speculation? c. What would be the possible impact of the war on the oil market with the action taken by the speculators described in part a? d. How would the action taken by the speculators impact the society?

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Definitions:

Social Learning Theory

A theory proposing that people can learn new behaviors and information by watching other people (also known as observational learning).

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, emphasizing the idea that behaviors are influenced by their consequences.

Food Aversion

A strong dislike or unwillingness to eat certain foods, often developed after a negative experience with the food.

Classical Conditioning

This teaching method repeatedly combines two stimuli; over time, a response once elicited by the second stimulus becomes elicited by the first stimulus in isolation.