Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose QD = 1000 - 100P and QS = -100 + 100P. The price consumers would have to pay for the market to achieve the socially optimal level of production is

Suppose that the cost of a loaf of bread in Zanadoo is 20 shillings, and this represents a full day's wages for the typical factory worker. The 20 shillings represents a ____ value while the loaf of bread costing a full day's wage represents a ____ value.

a) real; real b) nominal; nominal c) real; nominal d) nominal; real

Which of the following is true? a. The quantity of money demanded varies inversely with the nominal rate of interest

b. Money market equilibrium occurs at that nominal interest rate where the quantity of money demanded equals the quantity of money supplied. c. Rising national income will shift the demand for money to the right, leading to a new higher equilibrium nominal interest rate. d. All of the above are true.