In Coase's confectioner and doctor example, what was the externality?
a. The doctor building his office so close to the confectioner.
b. The vibrations generated by the confectioner's production process.
c. The large number of people entering the confectioner's factory thinking it was the doctor's office.
d. The screams of the doctor's patients disrupted factory workers from performing their duties.
b
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Individuals who have never been the best at doing anything
A) cannot have a comparative advantage in producing any product. B) can still have a comparative advantage in producing some product. C) perform all tasks at a higher opportunity cost than others. D) must have an absolute advantage in at least ones task.
In order to change the money supply, the Fed might use which of the following tools?
A. Dual mandate B. Reserve requirement C. Fiscal policy D. Deficit spending