quiz 2 sp 2011

Quiz 2 sp 2011 - econ222 quiz 3 Multiple Choice Identify the choice that best completes the statement or answers the question 1 Equilibrium

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econ222 quiz 3 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Equilibrium Analysis: Assume that chicken is a normal good. The equilibrium market price and equilibrium quantity of chicken would increase today if: a. consumers expect the price of chicken to increase in the near future. b. the price of chicken feed (input cost) decreased. c. consumer income fell. d. many chickens were dying in farm from contracting a major illness called the chicken flu. Figure 4-8 S D 100 200 300 400 500 600 700 800 quantity 5 10 15 20 25 30 35 40 45 50 price ____ 2. Refer to Figure 4-8 . At a price of $35, a. there would be a shortage of 400 units. b. there would be a surplus of 200 units. c. there would be a surplus of 400 units. d. there would be a surplus of 600 units. ____ 3. Assume a closed economy. For an economy as a whole, income must equal expenditure because a. the number of firms is equal to the number of households in an economy. b. international law requires that income equal expenditure. c. every dollar of spending by some buyer is a dollar of income for some seller. d.
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This note was uploaded on 02/20/2012 for the course ECON 222 taught by Professor Shimpalee during the Spring '10 term at South Carolina.

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Quiz 2 sp 2011 - econ222 quiz 3 Multiple Choice Identify the choice that best completes the statement or answers the question 1 Equilibrium

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