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True/False and Explain Your Answer: (3 points each) _If the price of a good goes up, then the demand will go down. _If worker

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1) False. When price goes up the quantity demanded goes down because there is a difference between demand and quantity demanded. Price and quantity demanded, and not demand, have inverse relationship

2) False. Opportunity cost of workers is their wages. When wages are increased, they tend to supply more labor so quantity of labor supplied increases. Demand for labor is intact.

3) True. This shows that there is always some opportunity cost (of next best alternative) when a choice is made

4) True. When such resources are absent, there is a misuse / over use of such resources.

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