Would these Economic statement be true or false?

Question

1. Inflation must be high in Los Angeles because it is very expensive to live there.

2. For most firms the most important cost of doing business is wages.

3. An increase in the wage—the price of labor—has two effects on the demand for leisure: the substitution effect and the income effect.

Answer 1

i believe the first 2 are false however not sure about the third  sorry!

Answer 2

1-False

2-True

3-True (though some more effects are observed)

4-False (it should state - who currently looking for a job)

5-False (GDP also includes what foreigners earned domestically)