Which term is used for an engagement in risky business with the idea of making a large profit in short time ?
Correct answer: C. Speculation
- A. Idealism
- B. Blind game
- C. Speculation
- D. Risk covering
Explanation
Speculation means undertaking a risky business activity in expectation of earning a substantial profit from future price changes. The other options do not describe this profit-seeking risk-taking activity.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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