Determine whether each statement is absolutely true, absolutely false or uncertain and then carefully explain why your determination is correct, make sure you define the key terms and relationship you use in your explanation. Part 1: Microeconomics 1. Profit maximizing behavior on the part of enterprises will lead to the efficient production of commodities. 2. According to Marshall, unsatisfied sellers will reduce the price of a commodity when it is above the equilibrium price. 3. The principle of diminishing returns to production implies a principle of increasing costs of production. 4. The universal economic problem is scarcity. 5. The demand for products with close substitutes tends to be own- price elastic, while the demand for products without close substitutes tends to be own-price inelastic. 6. The distribution of income is ultimately determined by: (a) the distribution of the ownership of the factors of production and (b) the prices of the services of these factors of production. 7. Economic rent is price determined, not price determining