1, Included among the reasons why less developed economies tend to have more informal activity than more developed economies is:

Select one:

a. developing economies' formal institutions are more economically efficient.

b. lower levels of income make complying with rules, regulations, laws, and social norms relatively easier in developing economies.

c. informal institutions are more likely to clash with formal institutions because developing countries' formal institutions have been recently established while their informal institutions are based on ancient traditions and customs.

d. All of the above.

e. Both b and c above.

2, Among the advantages from expanding the number of people that comprise a human society are:

Select one:

a. gains from specialization.

b. reductions in risk resulting from unpredictable adverse outcomes.

c. faster expansion of knowledge.

d. All of the above.

e. None of the above.

3, Specializing in the production of a good or service in which one has a comparative advantage enables a country to do which of the following?

Select one:

a. never have to engage in trade with other nations

b. increase the variety of products that it can produce with a decrease in resources

c. consume a combination of goods that lies outside its own production possibilities frontier

d. produce a combination of goods that lies outside its own production possibilities frontier