Question 1 ("incorrect" answers are signed with red crosses)
Note. Actually, CIDR allows IANA to assign smaller subnets from A and B class nets to the companies. Obviously, CIDR allows IANA to generate much more subnets than classfull way and Internet routing table growth can not be slowed down this way.

Actually the network layer has two protocols in widespread use today.
In a nutshell we can look at the packet switching as at hardware L3 routing. So clearly, the end-to-end route can change without connection loss, no one will receive busy signals when there are "too many users" and finally, traffic can be dropped by the intermediate nodes when queues are overloaded. Although the first answer is questionable, I've decided to mark at least one of them.
There are many congestion avoidance algorithms, so the second answer is incorrect (or correct just for two algorithms).