Question 12 of 33
Q.Say's law of Market assumes :
(a) Short-run analysis
(b) Full employment
(c) Imperfect competition
(d) Under employment
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2022MCQ· 1mImportance★★★★★
36% · 12/33 Questions
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Start your 14-day free trial to unlock the full solution →Say's law assumes full employment of resources, so option (b) is correct.
Say's Law of Markets states that 'supply creates its own demand' — the act of producing goods generates enough income to buy them, so there can be no general overproduction. This is a classical proposition that assumes the economy is normally at full employment, with perfect competition and flexible price …
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