Question : Gresham's law in economics relates to ___________.
Option 1: Supply and Demand
Option 2: Distribution of goods and services
Option 3: Consumption and Supply
Option 4: Circulation of currency
Correct Answer: Circulation of currency
Solution : The correct option is C irculation of currency
Gresham's law states that people will typically hoard or save the money that is viewed as being of higher quality (good money) and spend or circulate the value that is viewed as being of lower quality (bad money) if there are two forms of money in circulation and both are accepted at face value.
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Question : Which law states that bad money drives good money out of circulation?
Question : Which law of economics states, "Bad money drives out good money"?
Question : Which law states that with constant taste and preference, the proportion of income spent on food stuff diminishes as income increases?
Question : If a consumer's demand for a good moves in the same direction as the consumer's income, the consumer's demand for that good must be inversely related to the price of the good, which is called _____.
Question : The law of demand is based on:
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