Answer A trader could start in North America, picking up lumber, tobacco, …

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You answer CYou have to admit, this one seems rather logical. The idea of buying and selling commodities, especially natural resources, seems like a pretty good idea. However, in your experience buying and selling anything has its downsides. Buying raw materials to manufacture things can lead to over-exuberance and over-production. You know you shouldnt just make stuff you dont need, but sometimes you just do. When you bought the house you had to take out a loan and have the money for that money to grow over time. It wasnt like you were going to just go out and buy all the raw materials needed to build the house. You just had to buy everything in that one particular industry and that was pretty expensive. When the time came to actually sell those manufactured goods there was a glut and you didnt get enough of them to cover the full price. When you bought the house, you didnt realize how much the industry was growing and it just didnt have the supplies you needed to produce everything. You had to scramble to get more supplies as soon as they were available, but the whole time you were doing so the industry was growing and there was less and less of what you needed to manufacture everything. When you bought the house, you also didnt realize how bad the economy was, and still is You had to do two very expensive and very risky transactions and all for the things you needed to live in your house. You buy a house that was over-priced by 30 because you just dont have the money now to pay half that price. You answer AYou have to admit, this one kind of follows an explanation. If you had gone with A, you wouldve had to sell your house and you couldnt afford it. Buying things just because theres a surplus of them is never a good idea. When you bought your house, you didnt know where the industry was going to be, so you bought the house you did because it had the stuff you needed for the things you knew you were going to need. At the time, the prices were still reasonable, and the house was still reasonably priced, so all in all you bought a good deal. When you bought the house, it was good at making you money. You answer BYouve seen this one before. Youve seen countless times when a man buys a house to get married to get a nice house to live in. It just seemed like the right thing to do. When you bought the house, you didnt know if you would be living here when you were married. There may be a high chance that you wouldnt be able to buy or afford that nice house and you would have to sell.

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