Say's law states that
A) demand creates its own supply.
B) the more supply there is, the lower prices are.
C) supply creates supply.
D) supply creates its own demand.
E) none of the above
D
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Refer to the Article Summary. Unlike in the UK, labor productivity in the other G7 nations has increased since 2007. An increase in labor productivity:
A) will increase the labor force participation rate. B) allows the average consumer to increase consumption. C) will create short-run, but not long-run, economic growth. D) will increase output and decrease wages in the long-run
If economic profits are negative
A) accounting profits can be positive. B) accounting profits can be negative. C) the cost of capital is not being covered. D) all of these choices.
Why does it make sense for unprofitable firms to stay in business?
What will be an ideal response?
The law of demand tells us that people will buy less of a good if
A) the price of that good increases. B) the prices of other goods increase. C) people's income decreases. D) every factor that can affect people's buying decisions changes.