Question 2[5]TRUE/FALSE QUESTIONS

Consider the following list of statements.

Each statement is either true or false. You must read each statement carefully and then select the option that you believe is correct as your answer. Write down only the question number and next to the number either "True" or "False". Example:If you believe sub-question 2.6 is true, then write down: 2.6. True

.2.1.The law of supply states that the higher the price of a good, the lower the quantity supplied (ceteris paribus).(1)

2.2.One of the reasons why labor markets may be imperfect is that workers in a particular market are organised in a trade union which then acts as a monopolistic supplier of labour. (1)

2.3.A perfectly competitive firm has a downward-sloping demand curve.(1)

2.4.The demand for a product depends on the availability of the product.(1)

2.5.In the short run, a firm can expand output only by increasing the quantity of its fixed inputs.(1)