1. A substitute good is a determinant of supply.

True

False

2. As globalization and world trade proliferates, individual markets within countries' economies become more competitive.

True

False

3. If the spot oil price in petroleum markets is rising, then we can expect the supply curves of products using petroleum as an input to shift rightward.

True

False

4. Government actions, such as price floors and ceilings, can actually reduce employment and raise market inefficiency

True

False

5. A change in quantity demanded is a movement along the same demand curve.

True

False

6. "As the price of gasoline rises, consumer demand decreases. In addition, the quantity demanded of compact cars increased, causing their price to rise." This statement contains two errors: demand and quantity demanded are confused twice.

True

False

7. In the circular flow model, firms own economic resources, and households buy the manufactured products and services.

True

False

8. Equilibrium is a state of balance between supply and demand.

True

False

9. A supply curve is negatively sloped, while a demand curve is positively sloped. If given a graph of them both, that will be evidenced by computing each curve's X axis divided by its Y axis when devising a 90-degree angle.

True

False

10. For economies that rely on decentralized decision making, the most important decisions are made by the government.

True

False