define speculation in economics
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- Economic Definition of speculation. Defined. Term speculation Definition: Buying an asset with the intent of reselling it later at a higher price. The purpose of speculation is simply to buy low today and sell high tomorrow. Those who engage in speculation have no reason for buying the asset, other than resale at a later time.
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Difference Between Hedging and Speculation On the contrary, speculators perform speculation, in an attempt to earn profit from the changes in the difference between future price and spot price, as they bet on their difference. Hence, the risk is taken intentionally to reap profits. In this article you may find all the important differences between hedging and speculation, so take a read.
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Economic forecasting For related topics, see Forecasting. Economic forecasting is the process of making predictions about the economy. Forecasts can be carried out at a high level of aggregation—for example for GDP, inflation, unemployment or the fiscal deficit—or at a more disaggregated level, for specific sectors of the economy or even specific firms. 1 Overview.
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- What is 'Economics'. Economics is a broad term referring to the scientific study of human action, particularly as it relates to human choice and the utilization of scarce resources. Economic analysis often progresses through deductive processes, much like mathematical logic, where the implications of specific human activities are considered in a means-ends framework.
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Production microeconomics analysis. in economics: Theory of choice. ...how much the firm will produce, what mixture of products it will make, or what combination of inputs it will adopt; these depend on the prices of products and the prices of inputs (factors of production), which have yet to be determined.
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econ practice The definition of economics states that it is the study of how. agents choose to allocate scarce resources and the impact of those choices on society. The statement saw the unemployment rate peak at 10 percent in 2009 is a ______ statement since it describes what it's actually do. Positive.
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speculate 1. (when tr, takes a clause as object) to conjecture without knowing the complete facts. 2. (Stock Exchange) (intr) to buy or sell securities, property, etc, in the hope of deriving capital gains. 3. (intr) to risk loss for the possibility of considerable gain. 4. (Rugby) (intr) rugby NZ to make an emergency forward kick of the ball without taking any particular aim.
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MICHAEL A. S. GUTH, Ph.D., J.D. Professor of Financial Economics and Lawsend e-mail (E-mail is quickest method of contact).116 Oklahoma Ave. Oak Ridge, TN 37830-8604 Phone: (865) 483-8309 -----, (1969), `In Defense of Destabilizing Speculation,' reprinted in The Optimum Quantity of Money and Other Essays, Chicago: Aldine Publishing Company.n the opening paragraphs of this chapter we pointed out that speculation must be profitable over time, or the losses from speculative activity would be a self-correcting problem: the destabilizing speculators would fail to survive in a Darwinian sense.
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- The nature of economics. Economics is the scientific study of the ownership, use, and exchange of scarce resources-often shortened to the science of scarcity. Economics is regarded as a social science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations. Economics attempts to explain economic behaviour, which arises when scarce resources are exchanged. In terms of methodology, economists, like other social scientists, are not able to undertake controlled experiments in the way that chemists and biologists are.
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Explain the concept of economics? economics is the study of the production, distribution and consumption of goods and services. It involves the allocation of productive resources and it is necessary because of scarcity. Scarcity is a relative term, and only means there is more demand than supply of a particular good or service.
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bubble bubble definition A period of wild speculation in which the price of a commodity or stock or an entire market is inflated far beyond its real value. Bubbles are said to “burst” when a general awareness of the folly emerges and the price drops.
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Uncertainty, Risk and Probability Analysis in Economic Activity | Managerial Economics Uncertainty is a situation regarding a variable in which neither its probability distribution nor its mode of occurrence is known. For instance, an oligopolist may be uncertain with respect to the market­ing strategies of his competitors. Uncertainty as defined in this way is extremely common in economic activity. The function of the entrepreneur is to meet those risks which are non-insurable and which are called uncertainties.
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ECONOMIC CONSUMPTION • ECONOMICS (noun) The noun ECONOMICS has 1 sense: 1. the branch of social science that deals with the production and distribution and consumption of goods and services and their management. Familiarity information: ECONOMICS used as a noun is very rare.
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Speculation Speculation and investment[edit] The view of what distinguishes investment from speculation and speculation from excessive speculation varies widely among pundits, legislators and academics. Some sources note that speculation is simply a higher risk form of investment. Others define speculation more narrowly as positions not characterized as hedging.
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Social capital In economics, economic growth or economic growth theory typically refers to growth of potential output, i.e., production at  full employment . As an area of study, economic growth is generally distinguished from development economics.
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speculate (ˈspɛkjʊˌleɪt) vb. 1. (when tr, takes a clause as object) to conjecture without knowing the complete facts. 2. (Stock Exchange) (intr) to buy or sell securities, property, etc, in the hope of deriving capital gains. 3. (intr) to risk loss for the possibility of considerable gain. 4. (Rugby) (intr) rugby NZ to make an emergency forward kick of the ball without taking any particular aim.
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- PRICE DESTABILIZING SPECULATION 935 ily risk averse concerning their level of consumption, then we can juggle the ex ante probabilities of being a consumer, a speculator, or a member of this third sector so that speculation leads to an ex ante Pareto decline in welfare.peculators buy when the chances of price appreciation are high, selling when the chances are low. Speculative activity in an economy in which all agents are rational, have identical priors, and have access to identical informa-tion may destabilize prices, under any reasonable definition of de-stabilization.
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economics (ˌiːkəˈnɒmɪks; ˌɛkə-) n. 1. (Economics) (functioning as singular) the social science concerned with the production and consumption of goods and services and the analysis of the commercial activities of a society. See also macroeconomics, microeconomics.
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- Recall that the forward rate should be an unbiasedpredictor of the future spot rate. 6.6 Foreign Currency Speculation Speculation is an attempt to profit by trading on expectations about prices in the future.
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How much money do junior hockey teams make? In the latest round of chatter surrounding the potential of a CHL players’ union, TSN’s Rick Westhead pointed out that the Ontario League’s Kitchener Rangers made $6.2 million in revenue for the 2012-13 season.his represented the regular season’s finances and the biggest revenue generator was ticket sales, at $3.6 million. Expenses included facility rental, team travel, advertising and of course, money for players’ education.
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Economics A-Z terms beginning with A It gave birth to the definition of economics as the science of studying human behaviour as a relationship between ends and scarce means that have alternative uses. Austrian economic thinking was characterised by attributing all economic activity, including the behaviour of apparently impersonal institutions, to the wishes and actions of individuals. It did this by examining choices in terms of their opportunity cost (that is, what is the next best use of resources to that which is being considered?) and by analysing the impact of timing on decision making.
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What is economics? Economics can actually be defined a few different ways: it’s the study of scarcity, the study of how people use resources, or the study of decision-making. Economics often involves topics like wealth, finance, recessions, and banking, leading to the misconception that economics is all about money and the stock market. Actually, it’s a much broader discipline that helps us understand historical trends, interpret today’s headlines, and make predictions for coming decades.
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economic bubble A surge in the market caused by speculation regarding a commodity which results in an explosion of activity in that market segment causing vastly overinflated prices. The prices are not sustainable and the bubble is usually followed by a crash in prices in the affected sector.
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Macroeconomics Test A production possibilities curve graphically represents the maximum quantities of two products produced when all resources in the economy are being used efficiently. If an economy operates at a point inside its production possibilities curve,
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100 Economics Terms the study of how households and businesses make choices, how they interact in markets, and how the government attempts to influence their choices microeconomics the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth
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speculation speculation - continuous and profound contemplation or musing on a subject or series of subjects of a deep or abstruse nature; the habit of meditation is the basis for all real knowledge meditation musing, reflection, rumination, thoughtfulness, contemplation, reflexion - a calm, lengthy, intent consideration