Which of the following is an economic fact?

1. President Biden's decision to leave in place tariffs on Canadian soft wood lumber will not lead to greater efficiency in U.S. lumber regions, but it will keep lumber prices elevated for people building houses.
2. Human beings are inherently irrational because they usually do not consider the opportunity cost of their decisions.
3. No one individual knows how to make a smartphone, thus spontaneous order and self-interested strangers can be trusted to provide us with this product.
4. Eminent domain laws are part of the foundation of capitalism since profit is a more important measure of our well-being that property rights.
5. A and C only

Congresswoman Alexandria Ocasio-Cortez has sponsored legislation that calls for a 100% drop in CO2 emissions by 2030. Adam Smith would:

1. Agree with her plan, arguing that self-interested businesses and consumers should not be left alone to deal with climate change.
2. Agree with her, arguing along the same lines as Alexander Hamilton, that government needs to interfere to reduce CO2 emissions further.
3. Argue that central-planning - the opposite of what we learned in "I, Pencil" would work more efficiently than allowing businesses to continue to pollute.
4. Argue that profit-seeking businesses and self-interested consumers can be trusted to reduce CO2 emissions.
5. None of the above.

Germany has a tremendous comparative advantage over Kenya in the production of medical equipment. This means that if Germany and Kenya want to promote efficient economic policies to help with the current pandemic:

1. The Kenyan government should impose tariffs on medical equipment coming from Germany to protect jobs in this sector of its economy.
2. Germany should use infant-industry tariffs to keep its advantage in this field or fight dumping by Kenyan companies.
3. Kenya and Germany should seek reciprocal trade agreements in this area.
4. Kenya should attempt to become more self-reliant in the production of medical equipment regardless of the opportunity cost of doing so.
5. C and D only