a. One of the main conclusions of Say's Law was that
Part 2
A.
if people supply goods in order to then demand goods, there can be overproduction in a market economy and less than full employment will be the normal state of affairs.
B.
if people supply goods in order to then demand goods, there can be no overproduction in a market economy and full employment will be the normal state of affairs.
C.
if people demand goods in order to then supply goods, there can be no overproduction in a market economy and full employment will be the normal state of affairs.
D.
if people demand goods in order to then supply goods, there can be overproduction in a market economy and less than full employment will be the normal state of affairs.
B. if people supply goods in order to then demand goods, there can be no overproduction in a market economy and full employment will be the normal state of affairs.
b. Which of the following best exemplifies Say's Law?
A.
Increases in labor eventually lead to smaller and smaller increases in output.
B.
A decrease in the price of a good leads to a larger amount of the good being purchased.
C.
The production of a $4000 plasma TV set creates demand for other goods and services valued at $4000.
D.
The more you consume the less additional satisifaction you obtain from the next unit of the good.
C. The production of a $4000 plasma TV set creates demand for other goods and services valued at $4000.
c. Say's Law fits best in the----since this philosophy placed great importance on----to determine the---.
.
classical economics, supply and production, level of output and employment.
The correct answer is B. If people supply goods in order to then demand goods, there can be no overproduction in a market economy and full employment will be the normal state of affairs.
The answer to this question can be found by understanding Say's Law. Say's Law, named after the French economist Jean-Baptiste Say, states that supply creates its own demand. In other words, the production of goods and services generates income for individuals, which in turn enables them to demand and purchase the goods and services produced.
Based on this understanding, we can analyze the options provided:
A. if people supply goods in order to then demand goods, there can be overproduction in a market economy and less than full employment will be the normal state of affairs.
This option suggests that overproduction may occur, leading to less than full employment. However, Say's Law indicates that supply creates its own demand, so this statement contradicts the law.
B. if people supply goods in order to then demand goods, there can be no overproduction in a market economy and full employment will be the normal state of affairs.
This option aligns with Say's Law as it states that there can be no overproduction in a market economy and full employment will be the normal state of affairs. This is the correct conclusion based on Say's Law.
C. if people demand goods in order to then supply goods, there can be no overproduction in a market economy and full employment will be the normal state of affairs.
This option suggests that if people demand goods before supplying goods, there can be no overproduction and full employment will be achieved. However, this statement contradicts Say's Law, which emphasizes that production generates its own demand.
D. if people demand goods in order to then supply goods, there can be overproduction in a market economy and less than full employment will be the normal state of affairs.
This option suggests that overproduction may occur and full employment may not be achieved if people demand goods before supplying goods. However, this statement contradicts Say's Law.
Therefore, the correct answer is B. if people supply goods in order to then demand goods, there can be no overproduction in a market economy and full employment will be the normal state of affairs.