What is meant by the concept of a "coordination failure" in macroeconomics?
When individual members of an economy respond to signals on prices, output, employment, and spending, they may act in such a way as to make the macroeconomic situation worse. For example, a businesswoman in a recession notices that she has unsold products. She must lay off workers to cut payroll expenses. If this behavior is generalized throughout the economy, more workers will be laid off and demand for other businesspersons' output will decrease as well, leading to a deepening recession.
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In April, market analysts predict that the price of titanium will fall in May. What happens in the titanium market in April, holding everything else constant?
A) The demand curve shifts to the right. B) The supply curve shifts to the left. C) The quantity demanded and the quantity supplied increase. D) The supply curve shifts to the right.
Explain how labor resistance and political and legislative influences reduce the ability of firms to minimize their costs of production. What do the two have in common in this regard?
What will be an ideal response?
Which of the following is not an information characteristic that the GASB identifies as important in government financial reports?
a- Comparability. b- Timelines. c- Reliability. d- Conciseness.
Consider a market characterized by a Herfindahl-Hirschman index of 5,000. One of the firms in this market has a Lerner index of 0.89 and is considering a horizontal merger with a competing firm. Based on this information, it is likely that the U.S. Department of Justice will:
A. reject the merger since the industry is highly concentrated, even though the firm proposing the merger has little market power. B. reject the merger since the industry is highly concentrated and the firm proposing the merger has significant market power. C. approve the merger since the industry is not concentrated and the firm proposing to merge has little market power. D. None of the answers are correct.