Decision maker''s approach or logic, Macroeconomics

Assignment Help:

Listed here are several examples of bad, or at least questionable, decisions. Evaluate the decision maker's approach or logic. In which of the six decision steps might the decision maker have gone wrong? (a) Mr. and Mrs. A recently bought a house, the very first one they viewed. (b) Firm B has invested five years and $6 million in developing a new product. Even now, it is not clear whether the product can compete profitably in the market. Nonetheless, top management decides to commercialize it so that the development cost will not be wasted. (c) You are traveling on a highway with two traffic lanes in each direction. Usually traffic flows smoothly, but tonight traffic moving in your direction is backed up for half a mile. After crawling for 15 minutes, you reach the source of the tie-up: a mattress is lying on the road, blocking one lane. Like other motorists before you, you shrug and drive on. (d) The sedative thalidomide was withdrawn from drug markets in 1962 only after it was found to be the cause of over 8,000 birth defects worldwide. (An exception was the United States, where the use of thalidomide was severely restricted).


Related Discussions:- Decision maker''s approach or logic

Define mortgage, When did mortgage? Default and housing foreclosure rates b...

When did mortgage? Default and housing foreclosure rates begin to rise rapidly? When did the economy go into recession? Was there a causal relationship between the two? Discuss.

Quantity Theory of Money, 2. Use the Quantity Theory of Money to explain in...

2. Use the Quantity Theory of Money to explain inflation (a increase in the overall level of prices). (4 points) If you were a member of the Federal Reserve Board of the Governor

Financing of fiscal deficit, Financing of Fiscal Deficit: Since the siz...

Financing of Fiscal Deficit: Since the size of balanced budget of the multiplier is small, it is not for all time possible to get the needed demand expansion by raising the exp

Gold standard after world war i, Did Germany ever go back on the Gold Stand...

Did Germany ever go back on the Gold Standard after World War I and prior to World War II? If so, what were the economic and political effects of doing so? I know it was on the Gol

Discretionary Fiscal Policy Effectiveness, Discretionary fiscal policy will...

Discretionary fiscal policy will stabilize the economy most when: A.) deficits are incurred during recessions and surpluses during inflations B.) the budget is balanced each year C

Unplanned and planned investment spending, A sudden decrease in the growth ...

A sudden decrease in the growth rate of GDP will cause a change in: A. planned investment spending. B. unplanned investment spending. C. both planned and unplanned investment spend

Phillips Curve!, Using a short-run Phillips Curve, illustrate the change in...

Using a short-run Phillips Curve, illustrate the change in inflation and unemployment resulting from the increase in profit expectations.

Describe wage and employment for healthcare workers, Analyze how a model of...

Analyze how a model of the labor market can be used to explain wage and employment for healthcare workers.

IS LM MODEL, Using the equilibrium in the labor market and the model IS-LM ...

Using the equilibrium in the labor market and the model IS-LM explain the different behavior described by the classic and keynessian schools when there is an increase in public spe

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd