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

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.

8. Income and wealth inequality is a root cause of the global financial crisis 2007.

9. The water and diamond paradox cannot be explained by the concept of marginal utility.

10. According to David Ricardo, rent is not always the difference between the produce obtained by the employment of two equal quantities of capital and labor.