Question

Which of the following can be regarded as the laws of economics?

• A. There is a direct proportionate change in the price level with a change in the supply of money.
• B. Prices are determined by total demand and total supply in the market
• C. After a point the marginal increase in output shows a falling tendency with every increase in one or more of the factors of production.
• D. All of the above

Answer 1

The correct option is D All of the above

Economics laws are based on various assumptions which are necessary to follow while applying the law is as well as these laws can be applied only is some specific situation with given set of conditions. Moreover, these economic laws are not rigid statements but their application depends upon the tendency of their implementation. Therefore, all of the above can be regarded as economic laws.