Answer True of False to the following questions:

Opportunity cost is that which a business owner pays for plant and equipment, but not labor.

As a business grows, it becomes more and more difficult to increase productivity.

In a free market, consumers can buy what they need at reasonable prices because the federal government sets most prices.

The intent of TheWealth of Nations by Adam Smith was to put forth a logical and comprehensive argument furthering the idea that a free market provides an orderly and efficient economic system.

The "Keynesian School of Economics" would favor a hands off approach to economics. Keynesian economists believe that there are self-adjusting mechanisms in the economy which will eventually propel it toward full employment and stable prices.

Although economists do frequently have opposite views on economic policy questions, they agree on the principles.

In time we will be able to solve the economic problem.

As an entrepreneur, the more important you are to your business the more personal freedom you can obtain.

A free market system that Austrian economists favor would work only if society has a moral foundational base.

It is folly for a society to always want more. When society already has plenty of everything, people should be satisfied with what they have and not strive to have more. In fact, this would benefit economic growth.

The only solution to pollution is for the federal government to impose environmental regulations on all companies.

Economists agree that growth is the best way out of the world's debt morass.But they disagree on how to stimulate economic growth.