7. True/False statements. Simply state if the statement is true or false. No exp

Question

7. True/False statements. Simply state if the statement is true or false. No explanation required.

a. Prices, which are determined by all buyers and sellers as they interact in the marketplace, allocate the economy's scarce resources.

b. The law of demand states that the quantity demanded of a product is negatively related to price.

c. Wages of workers represent the price of the input called 'labor' and is therefore a shifter of the supply curve.

d. A movement along a supply curve is called a change in supply while a shift of the supply curve is called a change in quantity supplied.

e. If the price of a good is above the equilibrium price, the market will experience a shortage.

f. The law of supply states that, other things equal, when the price of a good rises, the quantity supplied of the good increases.

g. If the income of buyers increases, the demand for all goods and services would increase.

h. Surpluses drive price down while shortages drive price up.

i. If most of the world cocoa production is on the Ivory Coast, political unrest on the Ivory Coast will cause a left shift in the demand curve for cocoa.

Explanation / Answer

Ans a)True

Ans b) True

Ans c) False

Ans d) False

Ans e) False

Ans f) True

Ans g) True

Ans h) True

Ans i) False

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