Of the Demand or Market Products (Exam 2)

Production

According to Jena Baptiste Say, what is the source of demand?

Other products

What are products ultimately paid for by

Other goods are insufficiently produced

Why do goods remain unsold

Purchasing Power

The amount of goods and services a single unit of money can produce

Other products

What do products open markets for

True

True or False: Producers benefit from the prosperity of other producers

Prosperity of the society

According to Says, what is each person’s interest tied to?

More people producing, a diversified production, more specialized economic activity

Say states that the markets expand when:

More exchanges, larger markets, higher incomes

Consequences of larger markets, according to Say

Wealthy trading partners create stronger markets, countries benefit when other countries become richer

According to Say, why do nations benefit from the prosperity of other nations?

Wealth comes from production, merely transferring or spending existing wealth does not create new value

According to Say, government cannot create wealth by spending. Why?

Policies that discourage production reduce prosperity, restrictions on enterprise trade and industry shrink markets

Why does Harmful regulation obstruct markets, according to Say

Attract labor and capital

What did Say say about high profits?

Drives resources away

What did Say say about low prices?