BS Ethics Ex 1 Q 1 - BS Ethics, BBA 4751-04D James Tilley,...

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BS Ethics, BBA 4751-04D James Tilley, Section 1 Exam, Q1 When a nation’s economy is built on free trade there are similar effects. Employees are in search of jobs with the highest wages, and apply their skills and experiences to making a professional product. Consumers are in search of the lowest offered price; this forces competition between companies to lower prices that will attract customers. When personal gain is the driving force it contradicts the free trade concept, this is known as the invisible hand theory. The invisible hand theory is where lower prices are traded for higher prices until it peeks at a much higher price. An example that comes to mind is this past summer when gas prices increased over several months and now remain at a much higher than normal average. A common belief is that a corporation becomes efficient meaning increased output vs. lower input. Utility in the economy will increase the goods and services offered. The idea of perfect competition encourages new businesses to enter
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This note was uploaded on 10/21/2011 for the course BBA BBA2401 taught by Professor Profmicketonsert during the Spring '11 term at Columbia Southern University, Orange Beach.

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BS Ethics Ex 1 Q 1 - BS Ethics, BBA 4751-04D James Tilley,...

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