• In a monopoly there is only one firm in the market: TRUE OR FALSE
• The Law of Demand States that: A .as the price of a good increases, more units are demanded. B. there is an increase in the need for a good as the price of the good increases. C. there is a direct relationship between the price of a good and the quantity of the good produced. D. there is a negative relationship between the price of a good and the quantity of the good demanded.
• An increase in the number of producers will: A. increase the market supply only when market demand increases too. B .increase the market supply, because the price will rise. C. increase the market supply, because market supply is the sum of all individual supply curves. D. decrease the market supply, because firms compete with each other and each firm will supply more.e.increase the market supply only if each supplier has an identical supply curve.
• Under perfect competition, firms produce at the minimum possible cost: TRUE OR FALSE
• Positive economics is a(n): A. statement of fact. B .analysis of all the good market outcomes. C.judgment of the correctness of an economic outcome. D. .analysis of what ought to be. E. reflection of a country's values.
• Collusion means that firms may agree onprices, market share and advertising expenditure: TRUE OR FALSE

• In a product market,households buy goods and services produced by businesses: TRUE OR FALSE
• Natural resources are: A. available in unlimited quantities. B. only desired for use in producing other goods. C. not considered scarce because no one pays for them. D. included in the category of resources called land.