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:

Steep Slopes

Land areas where the ground rises sharply, often leading to challenges in construction and increased risk of erosion.

Wind

The flow of gases on a large scale, primarily on Earth's surface, resulting from air moving from high pressure to low pressure areas.

Sedimentary Rocks

Rocks formed by the deposition and subsequent cementation of mineral or organic particles on the floor of oceans or other bodies of water.

Rock Forms

The various shapes and structures that rocks can take, including layered formations, intrusions, and extrusions.