Which Term Describes a Market Failure Resulting from Speculative Buying

question 31

Multiple Choice

Which term describes a market failure resulting from speculative buying that drives up the price of major commodities to levels exceeding their intrinsic value?

• A)collective exploitation
• B)collective engagement
• C)inflation
• D)bubble

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Definitions:

Semipermeable Membrane

A type of barrier that allows some particles to pass through while preventing others, often used in the context of biological membranes or filtration systems.

Salt

A mineral composed primarily of sodium chloride (NaCl), used in food for flavoring and preservation.

Aqueous Solution

A solution where water is the solvent.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, composed of hydrogen and oxygen, vital for all known forms of life.