Which of the following policies would be advocated by someone who wants the government to follow an active stabilization policy when the economy is experiencing severe unemployment?

If the value added of a firm is positive, will the firm necessarily have positive profits?

What will be an ideal response?

Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3

A) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. B) too many consumers want to buy iced tea. C) the quantity supplied is greater than the economically efficient quantity. D) economic surplus is maximized.