1-If in the automobile markets we know that two SUV brands, Z and X, are substitutes. Suppose that the supply of X decreases and, at the same time, the supply of the Z increases. Other things being equal, what would be the expectations for the change in the equilibrium quantities at the two markets?

The equilibrium quantity of Z will increase and the equilibrium quantity of X will remain the same.

The equilibrium quantity of X will increase and the equilibrium quantity of Z will remain the same.

The equilibrium quantity of X will increase and the equilibrium quantity of Z will decrease.

The equilibrium quantity of Z will increase and the equilibrium quantity of X will decrease.

2-Which of the following is not a "false" statement in economics?

Points along the country's production possibilities frontier (PPF) are feasible and efficient in the production, while points below the country's PPF are infeasible and inefficient in the production.

The low of supply states that, other things being equal for a rational supplier under the normal circumstances, the higher the price of the product, the higher the quantity supplied from that product, and vice versa.

The production possibility frontier (PPF) for an economy illustrates the different combinations between two products that an economy can produce when all resources are fully employed, with an unchanged available amounts of resources, and for a level of technology that only advances and never regresses.

Scarcity means that the available economic (limited) resources are enough to produce the goods and services necessary to satisfy all of the unlimited human wants.

3-Which of the following cannotbe used as an example of the "income effect" as a tool in explaining the downward slope of the demand curve for a normal product?

A higher price of a given product constitutes a lower purchasing power of goods and services.

A lower price of a given product constitutes a higher purchasing power of goods and services.

A higher price of a given product directs the consumer to demand more from the other substitutable products.

None of the above.

4-Which of the following studies isnotconsidered a microeconomic study?

A study investigates the aggregate consumption of all goods and services within the U.S. economy.

A study investigates the aggregate consumption of all goods and services within the Texan economy.

All of the above.

None of the above.