State whether each of the following statements is TRUE or FALSE.

1. Utility is easily measured and quantified.

2. Economic models explore decision making by individuals, firms and other organizations.

3. A key assumption of most economic analysis is that people act rationally, meaning they respond to incentives.

4. Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle.

5. One example of a microeconomic question is, "How will prices in the satellite TV industry change if a new firm enters the market?"

6. The opportunity cost of going to a particular college is not the same for everyone.

7. Economists argue that individuals should continue to consume until total benefit equals total cost.

8. According to the principle of diminishing returns, an additional worker decreases total output.

9. The market demand curve shows the relationship between the price and the quantity demanded by all consumers, everything else being equal.

10. The price elasticity of demand is constant along a downward -sloping linear demand curve.