Name: Muhammad Izzaib

Class: Management 3D

Absent: 15

Number: 044325158

1. The two main causes of market failure are externalities and market forces. Externalities are
the impact of a party's actions on third parties who are not involved. An example is factory
waste. Although not all of the surrounding communities are involved in production, the
presence of pollution poses a danger to them. Externalities lead to market failures because
the equilibrium price does not accurately reflect the actual benefits of a product or service.
Market power refers to the ability of one party (or a small group of parties) to influence
market prices. Such nature of the market can cause prices to not reflect the supply-demand
balance, which is a form of market failure. An example is cartel practice in an oligopoly
market.

2. There are three main indicators that distinguish micro and macro economics. The three
indicators include aspects of the study, basic concepts, and analysis objectives.
From the aspect of study, compared to macroeconomics, microeconomics studies each
variable in a small scope. In short, microeconomics has aspects of study that focus on every
economic variable. Studies in macroeconomics include investment variables, national
income, monetary and others.

What about differences based on basic concepts? The difference refers to policy making.
Microeconomics involves various theories such as distribution, price, and product.
Meanwhile, macroeconomics focuses on output, income, the possibility of deflation and
inflation, and others.
The difference between macro and micro economics also focuses on goals and analysis to
make a profit. Macroeconomics applies analysis of ways to allocate resources, while
microeconomics is involved in economic activities on an international or national scale.

3. The New Trade Theory states that the nature and character of international transactions
have changed greatly today where the flow of goods, services and assets that cross borders
between countries is not well understood by traditional trade theories.

4. 1. Non-exclusivity. One of the distinguishing properties of public goods

with other goods is whether people can be excluded from benefits
the item or not. For most personal items, an exception
of course it is very possible. National defense is an example
standard. Once an army is formed, everyone in one
the country benefits, whether he pays or not. Goods
This non-exclusive can be countered by goods for personal consumption
exclusives, like cars or movies where the exceptions
is a simple matter. Those who do not pay for goods
the person does not receive the services promised by the item.
 2. Nonrivalry. The second characteristic is the character of goods
public is non-rivalry. Nonrivalry goods are goods
where the benefits can be provided to additional users for a fee
zero marginal.

For most goods, additional consumption amounts

requires a certain amount of marginal production cost. Suppose extra
Viewers on one television channel will not add to the cost though
this action causes additional consumption.
consumption by
additional users of such items is
nonrivalitas/noncompetition so that the additional consumption
requires a social marginal cost of production of zero, consumption
it does not reduce the ability of others to consume.

5. Recession is a term used to describe a situation in which a country's economic turnover

turns slow or gets worse. This slowing economic turnover can last quite a long time, even
years, as a result of the growth of a country's gross domestic product (GDP) declining for two
quarters and continuing continuously.

GDP itself can be interpreted as a country's economic activity during one period. So, if a
country experiences continuous decline in economic activity for two periods, then the
country can be said to be in a recession.

Meanwhile, the National Bureau of Economic Research (NBER) which is located in the United
States, defines a recession as a condition in which a country experiences a significant decline
in economic activity within a period of several months in terms of real GDP, income,
unemployment rate, industrial production, wholesale-retail sales.

6. The quantity theory of money is a hypothesis about the main causes

value for money or price level. This theory produces the conclusion that
changes in the value of money or price levels are a result of their existencechanges in the
money supply