What are some examples of Economic Illiteracy?

Question

Basically when could a company have avoided bankruptcy or anything like that if they were economically literate?

thanks for any help!

Answer 1

All the American automakers could have avoided decades of troubles if they had believed that the rest of the world was passing the 12 mpg super-boat by and had started working toward more economical vehicles.

Efficient, workable fuel injection systems were available for years before they realized they had to use them or go under.

Answer 2

If by economically illiteracy you mean not knowing economic theory, probably not any, but there have been many who have gone bankrupt by making bad business decisions. Economics is a study of how businesses work, but does not have much in the way of predictive value. Right now half of the economists think there will be a recession next year and half don't and theory will not help businesses to decided whether or not to expand.