In this assignment, you will write a research paper about social Â problems where the free markets are not allowed to function, which Â includes the market for a particular illegal good or service, a Â regulated market, etc
Markets are mechanisms for coordinating the set of connections of Â production operations that are distributed throughout the whole economic Â system. Thus, the market is the predominant and determining link Â between producers of goods and services and consumers. Accordingly, Â markets, as an exchange of goods and services that takes place as a Â result of buyers and sellers interactions, are generally considered the Â most efficient allocator of resources in the market economy.Â
However, free markets are unable to solve many social problems, and Â they make others worse. One such social problem is illegal drugs. Â Another example is environmental issues such as pollution. For one Â example of a social problem where supply and demand is not allowed to Â function freely, conduct basic research on markets for human organs. Â There are black markets (underground economies) for human organs in some Â countries. But a trade in human organs, based on supply and demand, Â raises enormous and troubling ethical issues and shows that free markets Â are clearly limited in their ability to provide answers to social Â problems.Â
Course Outcome practiced and assessed in this assignment:
GB540-1: Evaluate ethical issues in economics.
Your research should be about social problems where the free markets Â are not allowed to function, which includes the market for a particular Â illegal good or service, a regulated market, etc.Â
Select a social problem where free markets are not allowed to function, and conduct research on the social problem.
Describe how free market features could be introduced to help Â alleviate the social problem through free market operations of supply Â and demand.
Discuss the risks of introducing market mechanisms of supply and demand in situations where ethical issues are present.
Explain roles of the government in maintaining ethical business practices.