1-Which of the following statements is considered a "correct" statement in economics?

When a country produces on its production possibilities curve, then this country's unemployment is expected to be at one of its lowest rates; however, prices in this country are not expected to be relatively low.

Between any two countries trading two products, where each country has a comparative advantage in producing one of these two products, we know that the regulated trade is always better than the free trade.

As the trade theory suggests, a "tariff" on imported products is an example of a trade barrier that is always desired because it protects the domestic suppliers.

For any economy, "regulated trade" (trade with barriers) is always preferred to both "free trade" (trade with no barriers) and "no trade."

2-For a country X producing only two products, A and B; when other things remain equal, points along the country's production possibilities frontier (PPF) can be used to show which of the following?

The opportunity cost of producing product A but not the opportunity cost of producing one unit of B.

The opportunity cost of producing product B but not the opportunity cost of producing one unit of A.

The opportunity cost of producing product only one product (i.e., A or B), but not the other.

None of the above.

3-Texas laws prohibits price gouging, which is recognized when some sellers take advantage of buyers and excessively raise the prices of necessary goods during declared emergencies, such was the case during Hurricane Harvey in 2017. Which of the following is true about the Texas policy that prohibit "price gouging"?

This policy protects the sellers from having surpluses (excess supply) of their supplied products during declared emergencies.

This policy helps reaching the market equilibrium prices of all products during declared emergencies.

This policy helps reaching the market equilibrium prices of only the necessary products during declared emergencies.

None of the above.

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

The equilibrium price of A will increase and the equilibrium price of B will decrease.

The equilibrium price of A will increase and the equilibrium price of B will remain the same.

The equilibrium price of B will increase and the equilibrium price of A will decrease.

The equilibrium price of B will increase and the equilibrium price of A will remain the same.