The Idea That Supply Creates Its Own Demand Is Known

question 97

Multiple Choice

The idea that supply creates its own demand is known as

• A) the law of diminishing returns.
• B) Murphy's law
• C) Keynes' law.
• D) Say's law.

Distinguish between different business entities (sole proprietorship, partnership, and corporation) regarding structure and liability.

Recognize the principles of ratification and estoppel in agency relationships.

Understand the applications and limitations of the concept of limited liability in business organizations.

Understand the concept and implications of the production possibility frontier (PPF) and its shape.

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Definitions:

Account Balance

The total amount of money in a financial account, calculated by subtracting total debits from total credits.

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense account.

Acquisition Method

An accounting procedure for recording the purchase of one company by another, focusing on fair value assessments of acquired assets and liabilities.