Question : Which law of economics states, "Bad money drives out good money"?
Option 1: Baxter's Law
Option 2: Ohm's Law
Option 3: Gresham's Law
Option 4: Gauss's Law
Correct Answer: Gresham's Law
Solution : The correct option is Gresham's Law.
Gresham's law is an economic principle that states that bad money drives out good money. It is a monetary principle that can be applied to the currency markets. Good money means any currency or coin whose legal tender value and the value of the commodity do not differ much. Bad money means any currency or coin whose legal tender value and the value of a commodity have a huge difference.
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Question : Which law states that bad money drives good money out of circulation?
Option 1: Wagner's law
Option 2: Grimm's law
Option 3: Gresham's law
Option 4: Keynes' law
Question : Which law states that with constant taste and preference, the proportion of income spent on food stuff diminishes as income increases?
Option 1: Say's Law
Option 2: Griffin's Law
Option 4: Engel's Law
Question : Which chemical law proposes that "soft drinks and soda bottles are sealed under high pressure to increase the solubility of CO2?"
Option 1: Dalton’s Law
Option 2: Henry's Law
Option 3: Ohm's Law
Option 4: Raoult’s Law
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
Question : Which of the following laws states that with the temperature remaining constant, the volume of a given mass of a gas varies inversely with the pressure of the gas?
Option 1: Graham's Law
Option 2: Kepler's Law
Option 3: Charles's Law
Option 4: Boyle's Law
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