1-Which of the following is a potential reason that explains why economies may gain when specializing (i.e., in the long run) in producing fewer goods and services?

Higher production scales allow in the long run for adopting higher levels of production technologies.

Higher production scales allow in the long run for producing more at lower average cost.

All of the above.

2-Which of the following isnota non-price determinant of the market quantity demanded (i.e., a shifter of the market demand curve)?

Product's own price.

Buyers' incomes.

Number of buyers.

Prices of substitutable products.

None of the above.

3-Assume you are considering buying some identical mechanical pencils and you have all the information that you needed to find your optimal quantity demanded from these mechanical pencils. Which of the following should guarantees you are reaching to the optimal quantity demanded from these mechanical pencils?

Your marginal benefit is at least equal to the marginal cost, if not smaller than the marginal cost.

Your marginal benefit is at least smaller than the marginal cost, if not equal to the marginal cost.

Your marginal benefit is at least equal to the marginal cost, if not greater than the marginal cost.

Your marginal benefit is at least greater than the marginal cost, if not equal to the marginal cost.

4-Which of the following statements is considered "false" in economics?

Because the number of available goods and services is uncountable, countries may never gain less if they specialize endlessly in producing fewer goods and services.

For any economy, the "scarcity" problem simply means that the available economic resources are "not enough" to produce all goods and services required required to satisfy all of the unlimited human wants.

Division of labor in some cases is used to explain why countries gain when specializing in producing fewer goods and services.

For a country X producing only two products, A and B, the production possibilities Frontier (PPF) can be used to show that the implicit opportunity cost of producing A should always be increasing.