According to Say's Law

question 102

Multiple Choice

According to Say's law:

• A) because households save some of their income, not all goods and services produced will be purchased.
• B) the demand for products creates the supply of products.
• C) recessions occur because income from the production of goods is insufficient to ensure full employment.
• D) the act of producing goods and services generates income that is equivalent to the value of goods and services produced enabling buyers to purchase those goods.

---

Definitions:

Point Estimate

A single value derived from sample data that serves as the best guess or estimation of an unknown population parameter.

Confidence Interval

A spectrum of figures, coming from sample data, predicted to hold the value of a hidden population characteristic.

Sampling Error

The error that occurs due to observing a sample instead of the whole population, which may cause sample statistics to differ from the actual population parameters.

Confidence Interval

A statistical interval estimating the range within which a population parameter is expected to lie, based on sample data and a specified confidence level.