Ethics and Economics

Ethics and Economics - EthicsandEconomics(AndCoffeeToo)

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Ethics and Economics (And Coffee Too) Monday, October 18th, 2010 AUTHOR Chris MacDonald   Chris MacDonald is Associate Professor in the Philosophy Department at Saint Mary's  University (Halifax, Canada). 1 The author introduce himself that he doesn’t know any thing about economics or how the way to calculate ethics behavior in business, and then he introduce an ethical issue which is related to price. He said that “prices are clearly important to all of us: the  price of a thing tells us how much we would have to pay to get it. But economists  recognize that prices play two other very important  social  roles, roles that are  important to the way the economy as a whole operates”. Then he defined the two  important social roles that prices play. First, a price conveys information. When something is expensive, that tends to  convey the fact that it is scarce — scarce enough that buyers are willing to pay a  lot for it, and are perhaps even competing with each other and hence bidding up  the price Second, a price provides  motivation . People are generally (though unevenly)  motivated by money, and by moneymaking and money-saving opportunities.  After that he provide an example based from the book,  The Undercover   Economist , written by economist Tim Harford. “Coffee farmers are poor, and will  generally remain poor, because the thing they produce isn’t scarce. As coffee can 
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Ethics and Economics - EthicsandEconomics(AndCoffeeToo)

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