Question

Which of the following statements is not considered a "false" statement in economics?

Question 8 options:

	When other things remain equal, buyers are expected to stock up (demand more) from the normal product that they expect its market prices will decline significantly in the soon future.
	Other things remain unchanged, the market demand curve for a particular product is expected to shift leftwards when the price of that product declines.
	Other things being equal, a shortage from Pepsi Cola is expected if both buyers and sellers of Pepsi Cola strongly believed the forecast of significant decline in the market price of Pepsi Cola.
	Other things remain unchanged, the demand for inferior products is expected to decrease when buyers' incomes go up

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?

Question 9 options:

	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.

Which of the following can not be used as an example of the "income effect" as a tool in explaining the downward slope of the demand curve for a normal product?

Question 19 options:

	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.

Which of the following statements is considered "false" in economics?

Question 20 options:

	Because the number of available goods and services is uncountable, countries may never gain less if they specialize endlessly in producing fewer goods and services.
	Division of labor in some cases is used to explain why countries gain when specializing in producing fewer goods and services.
	For any economy, the "scarcity" problem simply means that the available economic resources are "not enough" to produce all goods and services required required to satisfy all of the unlimited human wants.
	For a country X producing only two products, A and B, the production possibilities Frontier (PPF) can be used to show that the implicit opportunity cost of producing A should always be increasing.

Which of the following is true in economics?

Question 22 options:

	Economics is a physical (natural) science that studies the scarcity and choice problems.
	There is a surplus (excess supply) of a good when the quantity demanded exceeds the quantity supplied or when the market price is below its equilibrium level.
	Producers' surplus is the area between the market supply curve and the market price when the market supply curve is below the market price.
	The equilibrium in a competitive (free) market occurs when the quantity supplied of a good exceeds the quantity demanded of that good.

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?

Question 23 options:

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

Which of the following studies is not considered a macroeconomic study?

Question 24 options:

	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.

Answer 1

Question 8

The followung statement is not false

* Other things remain unchanged, the demand for inferior product is expected to decrease when buyer's income go up. Because Inferior goods are those goods whose demand will decrease as income increases.

All other options are false

* When other things remain equal buyers are expected to demand more from the normal product that they expect its market price will decline significantly in the soon future: the satement is false because consumers will hold off their present consumption if they expect a fall in the price in the future. So the demand for that product will decrease.

* other things remain unchanged, the market demand curve for a product is expected to shift leftward when the price of that product declines: This is false because the demand curve for a product shift only when the non price factors are changed.

* Other things being equal, a shortage from pepsi cola is expected if both buyers and sellers of pepsi cola strongly believed the forecast of significant decline in the market price of pepsi cola: This statement is false because an expectation of decrease in market price will increase the curreant supply.