1. Explain how supply and demand functions in a free market system. What is the equalibrium?
2. What are the factors of production and why are they important. Give an example of each. Please use bullet points to make it easier for me to understand your responses.
3. When trying to determine whether or not something is ethical, the book advises that we consider the following questions: 1) Is the action legal? 2) Is it unfair to some parties? 3) If I take the action, will I feel badly about it? and 4) Will I feel ashamed or embarrassed if friends, family or others know I took the action?
Given this information, answer this question:
You are a purchasing agent for a company. You purchase Iarge quantities of office supplies from a number of different vendors. One of the vendors offers you two tickets to a professional sporting event, and to treat you and a friend to an expensive dinner afterwards. The tickets are worth $100 each. Is it OK to accept the tickets? What questions would you ask yourself to make the decision. Explain your reasoning.