Question

1. The fundamental assumption that supply creates its own demand is part of;

Group of answer choices

Keynesian Theory

Classical Theory

The law of supply

The production possibilities curve

The Austrian School of Economics

2. Given the following table, Which choice represents the correct marginal outputs?

Total Inputs	0	1	2	3	4
Total Outputs	0	1	2	3	4

Group of answer choices

Marginal Output

-

1

1

1

1

Marginal Output

-

1

2

3

4

Marginal Output = -, 1, 2, 3, 4

Marginal Output

-

1

3

6

10

The marginal output cannot be determined as there is not enough information provided.

Answer 1

Q1 Answer is B. Classical Theory.

It was given by Say and known as Says law.

Q2 Answer is A. Marginal output 1111

Marginal output is the change in total output when additional one input is used. Here with input 1 output was 1 and with input 2 output was 2. So change in input is 1 and change in output is also 1. So marginal output is 1.

In this way all marginal output are 1111. Because as one input is increased output also increased by 1.

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