State whether the following statements are true, false.

(a)Roads are considered common resources

(b)The consumption of alcohol in public places creates a negative externality. So a policy that bans all alcohols will maximise social welfare.

(c)The Melbourne flower market is perfectly competitive and the equilibrium price is $8 per bunch of flowers. If the government introduces a price floor of $6 per bunch on flowers then this will not affect the flower market.

(d)If the elasticity of demand for cocaine is -1.2 and the government succeeds in reducing supply substantially. As a result, buyers will now spend more on cocaine.

(e)Farmers enjoys an increase in their total revenues when they become more productive as a group.

(f)The world's richest nations should export everything as they are productive in producing anything.

(g)A price floor that is below the perfectly competitive equilibrium price creates a deadweight loss because it leads to reduced supply and excessive consumption.

(h)Economics is the study of how fairly goods and services are distributed within society.

(i)Suppose that wool and acrylic are substitutes for many consumers so that a rise in the world wool price leads to a rise in the price of acrylic. This means that a rise in the world wool price will tend to lead to a fall in the sales of acrylic.

(j)Aunty Poon operates a business in a competitive market. The current market price is RM10.At her profit-maximizing level of production, the average variable cost is RM11, and the average total cost is RM12.Aunty Poon should continue to operate in the short run.