1. Demand is measured on the vertical axis and supply on the horizontal axis.
True
False
2. Opportunity cost is the lowest valued benefit that must be sacrificed as the result of choosing an alternative.
True
False
3. "The big corporations in this country, like ExxonMobil and GM, have deep pockets and need to be hiring more people." This is a positive statement about economic policy.
True
False
4. The smaller percentage of one's net budget one has to allocate money to a particular product, the more price inelastic will be the demand for that product.
True
False
5. The law of demand states that there is a direct relationship between supply and demand.
True
False
6. In the production possibilities frontier, a nation's boundary will shift inward if they export more than they import, likely leading to inflationary pressures in the economy.
True
False
7. A point inside the production possibilities frontier represents an economythat is utilizing resources efficiently.
True
False
8. Households play a dual role of providing the factors of production whilepurchasing the goods and services of firms.
True
False
9. Excess demand in the market will cause the price of a product to decline.
True
False
10. Antiques would tend to have highly price inelastic supply curves.
True
False