If nominal wage rates increase by 2 percent per year and the price level increases by 5 percent per year, real wages will:

For-profit producers will produce only private goods because

A) buyers will be willing to pay for the goods since the benefits are excludable. B) all external benefits can be internalized using market prices. C) the cost of production can be easily determined. D) markets exist for private goods but not for public goods.

For a competitive equilibrium to occur, all of the following has to happen except

A) agents are price takers. B) the government sets taxes at zero. C) markets clear. D) the actions of all agents are consistent.