Say's Law states that
A. Increased prices lead to increased supply.
B. Shifts of either supply or demand can achieve a given market equilibrium.
C. Supply creates its own demand.
D. Wages and prices are inflexible, which prevents the achievement of market equilibrium.
Answer: C
You might also like to view...
Which of the following is a role of the Federal Deposit Insurance Corporation in the United States?
A) It determines the monetary policy of the country. B) It monitors the money supply. C) It controls the real rate of interest. D) It regulates banks that are insolvent.
Suppose there is a temporary supply shock because of a war in the Middle East, then, ceteris paribus, the ensuing cost push shock ________
A) would lead to a temporary increase in prices but a permanent reduction in output B) would lead to a temporary increase in output but a permanent increase in inflation C) would lead to a temporary decrease in output but a permanent increase in inflation D) all of the above E) none of the above
The long run is best defined as:
A. a period of time sufficiently long that at least one factor of production is fixed. B. the period of time between annual accounting reports. C. one year or more. D. a period of time sufficiently long that all factors of production are variable.
The government of Southland wants to improve resource allocation in the country. Which of the following actions by the Southland government is most likely to accomplish this?
A. Weakening enforcement of laws and contracts. B. Promising to cover every risk of loss for private firms. C. Coercing all firms to innovate and invest. D. Taxing polluters and subsidizing firms that are creating significant positive externalities.