What is Say's law and what does it mean?
What will be an ideal response?
Say's law is: Supply creates its own demand. It means that a general glut or overproduction is not possible. The very process of producing specific goods is proof that other goods are desired. The income received from selling one's goods is used to purchase other goods. While some goods may have a surplus, others will have a shortage, and these would be corrected by price changes. There will not be an excess quantity supplied of all goods.
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The U.S. lowered tariffs in the 1850s because of a budget surplus
Indicate whether the statement is true or false
Crowding out refers to the situation in which:
a. foreigners sell their bonds and purchase U.S. goods and services. b. borrowing by the federal government raises interest rates and causes firms to invest less. c. increased federal taxes to balance the budget causes interest rates to increase and consumer credit decreases. d. borrowing by the federal government causes state and local governments to lower their taxes.
Which of the following correctly describes price discrimination?
a. Selling the same good or service for different prices to different consumers for reasons unrelated to cost. b. Buying goods at a lower cost in one market and selling it at a higher price at another market. c. Selling the same good or service for the same price to different consumers. d. Charging higher prices for goods and services that are exported compared to those sold in the domestic market.
According to Kahneman and Tversky's value function, which of the following gifts provide higher total values:
A. 4 different gains of $25 each B. 1 gain of $100 each C. 2 different gains of $50 each D. All provide exactly the same value