Adherents of Say's Law Maintained That

question 228

Multiple Choice

Adherents of Say's law maintained that

• A)demand created its own supply.
• B)people work in order to earn income to spend on consumption.
• C)people work in order to earn income to save.
• D)demand is unaffected by supply.

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Definitions:

Contributed Surplus

An account on a company's balance sheet representing the excess amount investors pay over the par value of the company's shares.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, often with fixed dividends.

Common Shares

Equity securities that represent ownership in a company, entitling holders to vote at shareholder meetings and to receive a share of the company's profits through dividends.

Book Values

The value of an asset or liability according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.