The Classical Economists Felt That There Would Be No General

question 135

Multiple Choice

The classical economists felt that there would be no general overproduction of goods because of

• A) wage-price flexibility.
• B) the law of diminishing utility.
• C) the law of comparative advantage.
• D) contestable markets.

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Definitions:

Credit Terms

These are the payment conditions imposed by the seller on the buyer, including payment deadline, discount for early payment, and penalty for late payment.

Discount Period

The time frame between the purchase of a bill or note and its maturity date, during which the bill is discounted from its face value.

Production Run

A period during which a particular batch of goods is manufactured.