1 .		The basic decision-making units in the economy are households and firms.    True   False
2 .		Households demand inputs in order to supply outputs.     True   False
3 .		The quantity demanded of a product is not affected by the product’s price.    True   False
4 .		The law of demand states that there is an inverse relationship between the price of the product and the amount of it that a consumer (or consumers) will purchase.    True   False
5 .		A normal good is something that a consumer would buy less of if the consumer’s income increased.     True   False
6 .		An example of two goods that are substitutes (for most consumers) would be:    pancakes and syrup   cookies and milk   sugar and artificial sweeteners   peanut butter and jelly
7 .		A change in the quantity supplied of a good occurs when there is a change in:     a firm’s costs   the price of another good   technology   the price of the good itself
8 .		A shortage occurs when:    the quantity demanded is greater than the quantity supplied.   the quantity supplied is greater than the quantity demanded.
9 .		At the equilibrium price:     the quantity demanded and the quantity supplied are equal.   the quantity demanded may be greater than the quantity supplied.   the quantity demanded may be less than the quantity supplied.
10 .		An increase in the equilibrium price of a product can occur if there is:     a decrease in demand.   an increase in supply.   an increase in demand.   None of the above; the equilibrium price cannot change.