1. True or False: A shortage occurs if the market price of a good is below the market equilibrium price.

Select one:

True

False

2 True or False: The income elasticity of demand for Coles Instant Coffee is most likely negative.

Select one:

False

True

3 True or False: Because a monopolist is a price maker they can control both the market price and market quantity.

Select one:

False

True

4True or False: The investment (I) component of gross domestic product (GDP) includes the investment of purchasing Telstra shares in the stock market.

Select one:

True

False

5 True or False: Lower tax rates and lower interest rates are both examples of expansionary economic policy.

Select one:

True

False