Economics, Part 2
Question 1: Give an example of an ethical action for a business operating in a less-developed country.
Answer 1: One thing a business should do when operating in less-developed countries is take measures to maintain and protect the local environment. Usually, a business will do this through establishing ethic codes. Ethic codes define which behaviors and values are appropriate and create an environment that supports those values. It is important that those values also protect the rights of others and the society as a whole. When conducting business in a new area, especially a less-developed area, companies should establish ethic codes that make sure the local environment is protected before conducting any business.
There are lots of good resources about Economics that you can find available.
Question 2: Define the discipline of economics.
Answer 2: Economics is the study of the ways specific societies allocate resources to individuals and groups within that society. Also important are the choices society makes regarding what efforts or initiatives are funded and which are not. Since resources in any society are finite, allocation becomes a vivid reflection of that society’s values. In general, the economic system that drives an individual society is based on: What goods are producedHow those goods are producedWho acquires the goods or benefits from them Economics consists of two main categories, macroeconomics, which studies larger systems, and microeconomics, which studies smaller systems.
Question 3: Summarize the basics of a market economy.
Answer 3: A market economy is based on supply and demand. Demand has to do with what customers want and need, as well as how quantity those consumers are able to purchase based on other economic factors. Supply refers to how much can be produced to meet demand, or how much suppliers are willing and able to sell. Where the needs of consumers meet the needs of suppliers is referred to as a market equilibrium price. This price varies depending on many factors, including the overall health of a society’s economy, overall beliefs and considerations of individuals in society, and other factors.
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