determine which is True or False.

1 When the marginal productivity (PM) of labor is higher than the average productivity (PM) of labor, the average productivity increases.

2 Indifference curves are linear and decreasing lines.

3 In the long term, it is easier to reverse a decision.

4 Economic profit is generally higher than accounting profit.

5 Allocation or staggering of fixed costs comes from decreasing average fixed costs as production declines.

6 Implicit costs are opportunity costs that are not associated with any cash outflow.

7 According to Ernest Engel's law, the proportion spent on food increases as income increases.

8 We are prepared to pay more for diamonds, which are not essential to life, than for water, which is more essential to life, because we attribute a higher total utility to diamonds than to water.

9 According to the hypothesis of diminishing returns, when increasing quantities of a variable factor and fixed quantities of factors are combined, the PM and PM of the variable factor end up decreasing.

10 Saving is deferred consumption in the future. It would depend, among other things, on factors such as income and interest rates.