In an economy governed by a Malthusian trap, which of the following statements is false? O A. Increases in food production lead to increases in output per capita. B. Increases in food production do not affect output per capita. C. Increases in food production lead to increased fertility. O D. Increases in food production do not affect fertility. OE. All of the above. OF. Both (A) and (D). O G. Both (B) and (C). QUESTION 2 If a production process is characterized by increasing returns to scale, which of the following is true? O A. Average production costs (i.e. costs per unit produced) fall as total quantity produced increases. OB. Average production costs (i.e. costs per unit produced) increase as total quantity produced increases. C. Average production costs (1.e. costs per unit produced) do not depend on the scale of total production. D. None of the above. QUESTION 3 2 In the past fifty years, the world has seen unprecedented economic progress by historical standards that has spanned the globe. Nevertheless, inequality in per-capita income across countries is still large, and many low income countries remain very poor today. What are some theories for why we see such large divergence in income per capita across countries? A. Many low income countries are former colonies, and their extractive political institutions reflect a legacy of colonialism. B. Many low income countries have been recently been ravaged by civil wars, eroding productive capacity and making investments insecure. C. Many low income countries suffer from bad geography, such as rugged terrain that limits connectivity, lack of coastal access limiting trade, or poor soil conditions that inhibit agricultural productivity. C D. All of the above. CE. None of the above