True or False for the Following Statements

1. As markets throughout the economy become more competitive, the surplus rewards to product resources (economic rent) decreases while consumer surplus increases.
2. If significant external costs exist in the production of a product, a more than optimal amount of that product will be produced in the absence of government intervention.
3. If a good is non-rival in consumption (e.g., flood control), the market will produce a less than the optimal amount of that good (in the absence of government intervention).
4. The world per capita income would be higher if countries pursued international trade based on absolute advantage, rather than comparative advantage.
5. Even though Country A has an absolute advantage in the production of all goods, nonetheless, it would be better off trading with another country in an area where the other country had a comparative advantage in some goods.
6. A trade surplus (exports exceed imports) is more likely to depress the level of economic activity for a country than to stimulate it to higher levels.
7. If a nation has a current account deficit with the world, it must be a net borrower (at that time) with the rest of the world.