A Coordination Failure Occurs When

question 191

Multiple Choice

A coordination failure occurs when

• A)production on a factory floor is disorganized
• B)customers regularly trip over loose welcome mats at stores
• C)employers and employees fail to reach an agreement to increase nominal wages,employment,and an expansionary gap
• D)an economy is at full employment
• E)employers and employees fail to reach an agreement to reduce nominal wages,unemployment,and a contractionary gap

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Definitions:

Tying

The practice of making the sale of one good conditional on the purchase of an additional, separate good.

Minimum Wage

The lowest legally permissible wage that employers can pay their employees, set by governmental policies.

Uniforms

Standardized clothing worn by members of an organization or team to signify membership and promote unity.

Exclusion

The practice of blocking competitors from participating in a market.