No, Case Assignment Rules in Salesforce are not based on elapsed time. Instead, Case Assignment Rules are based on the criteria defined by the administrator to route cases to the appropriate users or queues. These criteria typically involve attributes of the case such as case origin, case type, priority, subject, description, account, or any other case field.
escalation comes into action when a case is failed to be closed within stipulated time (this depends on type of customer viz., silver,gold, platinum) . Assignment rule comes into action when cases are registered and assigned to queues/individuals. Hence escalation rule is time based / time lost in fixing the issue.
I agree it should be False, as the way the question is worded indicates elapsed time is the basis for Assignment Rules, and while time events could be a rule basis, they are not the only bases. In looking at Rule Creation options under Fields, there are options related to elapsed time, but also, under Contact, Phone Numbers, Owners, and many other options.
No, case assignment rules run immediately, usually on case creation, although you can call them later also. There is no time component to assignment rules (although you can add a formula field representing elapsed time and modify your assignment rules according to those I guess).
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