Choose whether the below statements are TRUE or FALSE. Briefly explain your reason . Show your calculations where necessary

1.In a simple Keynesian model (with lump-sum taxes and a MPC of 0.590 a tax cut of $ 20 billion will have less of an impact on GDP than an increase in government spending of $ 10 billion. Provide your answer with calculations.

2. The fact that trade policy often imposes harm on large numbers of people, and benefit only a can be explained by the problem of collective action.

3. If nation A can produce 5 units of good X or 10 units of good Y and nation B can produce 4 units of good X or 12 units of good Y, we can conclude that nation A has a comparative advantage in X and an absolute advantage in Y.

4. According to Marx, surplus value is the component of a commodity's value that exceeds the value of its inputs.

5. Interest rates are the major determinant of consumption spending in classical thought (for example, in the economics of Jean-Baptiste Say).

6. A lack of more advanced institutions decreases transaction costs in less developed countries and creates less economic development.

7. Common examples of political institutions include constitutions, electoral rules, free market and constraints imposed on the power of executives.