Strictly speaking, which entity below makes decisions?

The production possibilities curve shows various combinations of two products that an economy can produce when there is full employment and economic efficiency.

a. true b. false

Refer to Figure 4-7. 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) economic surplus is maximized. B) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. C) too many consumers want to buy iced tea. D) the quantity supplied is greater than the economically efficient quantity.