Which of the Following Is NOT True According to Say's

question 218

Multiple Choice

Which of the following is NOT true according to Say's law?

• A) Supply creates its own demand.
• B) No overproduction is possible in a market economy in the long run.
• C) Desired expenditures will always be higher than actual expenditures.
• D) Producing goods and services generates the means and the willingness to purchase other goods and services.

---

Definitions:

Molding Department

A specialized manufacturing sector responsible for shaping materials using rigid frames or models called molds.

Overhead Rate

A measure used to allocate the costs of indirect expenses to specific cost objects based on a certain base, such as labor hours or machine hours.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or company to allocate indirect costs to cost objects.

Direct Labor Hours

The total time workers spend on creating a product or service, often used as an allocation base in cost accounting.