Figure 4-7 -Refer to Figure 4-7. the Figure Above Represents the Market

question 34

Multiple Choice

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

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Definitions:

Governmental Fund Financial Statements

Financial reports that focus on the sources, uses, and balances of governmental funds and provide insight into fiscal accountability.

Proprietary Funds

Funds used by a governmental entity to account for activities similar to those found in private businesses, where the determination of net income, financial position, and changes in financial position is necessary.

For-Profit Organizations

Entities that operate with the primary goal of earning profit, distributing earnings to owners or shareholders.

Fiduciary Funds

Financial resources administered by a trustee or fiduciary on behalf of individuals or entities, following specific guidelines and for a specific purpose.