One Implication of Say's Law Is That

question 166

Multiple Choice

One implication of Say's Law is that:

• A) inflation will always exist, as all goods in the economy will be purchased.
• B) there is no recession, as all goods produced in the economy will be purchased.
• C) unemployment will always persist.
• D) there will always be a recession, as not all goods in the economy will be purchased.

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Definitions:

Kilos

A metric unit of mass or weight equal to one thousand grams.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours worked, multiplied by the standard labor rate.

Direct Labor-Hours

The total amount of labor time directly involved in manufacturing a product or delivering a service, often used as a basis for allocating overhead costs.

Variable Manufacturing Overhead

Overhead costs that fluctuate directly with the volume of production output, such as utilities and indirect materials.