The concept of 'Say's Law' states that: MCQ with Answer and Explanation

The concept of 'Say's Law' states that:
A. Government intervention is necessary
B. Money is the most important factor
C. Supply creates its own demand
D. Demand creates its own supply
Answer: Option C
Solution (By JKSSB Mock Tests)
Say's Law of Markets, associated with classical economics, states that 'supply creates its own demand', implying that general overproduction is impossible.

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Practice More Economy Set 1 Questions

Question #1
The 'New Development Bank' established by BRICS countries is headquartered in:
A. New Delhi
B. Shanghai
C. Moscow
D. Beijing

Correct Answer: Option B


Explanation:
The New Development Bank is headquartered in Shanghai, China.

This question belongs to: Economy GK Economy Set 1
Question #2
Per capita income is obtained by dividing national income by:
A. total labour force
B. total number of households
C. total working population
D. total population

Correct Answer: Option D


Explanation:
Per capita income is national income divided by mid-year total population.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Bounded Rationality' associated with Herbert Simon implies that:
A. Only perfect information is assumed
B. Rationality is unbounded
C. Individuals are limited in their cognitive capacity and information and therefore satisfice rather than optimise
D. Individuals always optimise with unlimited computational power

Correct Answer: Option C


Explanation:
Bounded rationality recognises that human decision-makers face cognitive limitations and incomplete information, so they typically seek satisfactory rather than optimal solutions.

This question belongs to: Economy GK Economy Set 1