True or False for the Following statements:

1. In an economy that is fully and efficiently employed, scarcity does not exist.
2. If a response to an increase in the price of a product is a decrease in the quantity demanded of the product, the result is correctly called a decrease in demand.
3. The process by which productive resources are transformed into useful goods and services is called consumption.
4. In the NIPA, Gross Private Domestic Investment does not include investment in human capital such as education.
5. The issues of inflation and recession are more correctly termed microeconomic issues than macroeconomic.
6. Any price above the equilibrium price in the market results in a shortage.
7. When the income of productive resources includes only opportunity cost (no economic rent) the welfare condition of equity has been achieved.
8. As firms with market power reduce supply (in order to raise price and profits), consumer surplus decreases.
9. The greater the competition in the markets of an economy, the closer that economy is to achieving efficiency and equity.
10. When oil prices reflect the monopoly power of OPEC, the public will pay more for oil and will consume less oil than if that monopoly power were not present.
11. The greater the substitution effect for a given product is, the more price elastic the demand for the product at each price will be.