True or False:
1. Good economic thinking requires thinking about average amounts rather than marginal amounts.
2. Positive incentives are those that either increase benefits or reduce costs, resulting in an increase in the level of the related activity or behavior; negative incentives either reduce benefits or increase costs, resulting in a decrease in the level of the related activity or behavior.
3. The safety issue is generally not whether a product is safe, but rather how much safety consumers want.
4. People can gain by specializing in the production of the good in which they have a comparative advantage.
5. Without the ability to trade, people would not tend to specialize in those areas where they have a comparative advantage.
6. Voluntary trade directly increases wealth by making both parties better off, and it is the prospect of wealth-increasing exchange that leads to productive specialization.
7. Government price controls can short-circuit the market's information transmission function.
8. When the economy produces too little or too much of something, the government can potentially improve society's wellbeing by intervening.
9. Not only does the market determine what goods are going to be produced and in what quantities, but it also determines the distribution of output among members of society.