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GB 540 Unit 1 Assignment  Free Market and Ethical Issues (Topic: Marijuana)
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GB 540 Unit 1 Assignment Free Market and Ethical Issues (Topic: Marijuana)

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Unit 1 Assignment: Free Market and Ethical Issues

Markets are mechanisms for coordinating the set of connections of production operations that are

distributed throughout the whole economic system. Thus, the market is the predominant and

determining link between producers of goods and services and consumers. Accordingly, markets, as

an exchange of goods and services that takes place as a result of buyers and sellers interactions, are

generally considered the most efficient allocator of resources in the market economy.

However, free markets are not allowed to solve some of the social problems in a society due to

various reasons. One such social problem is illegal drugs. Another example is environmental such as

pollutions. For an additional example for a social problem, where supply and demand is not allowed

to freely function, read the “Last Word” feature on markets for human organs on Pages 68–69 of your

textbook. There are black markets (underground economy) for human organs in some countries. But

a trade in human organs, based on supply and demand, raises ethical issues and hence it indicates a

limitation of relying on markets to solve the social problems we have in the society.

Course outcome(s) practiced and assessed in this Assignment:

GB540-3: Evaluate ethical issues in economics.

Directions

You can write your research about social problems where the free markets are not allowed to

function, which includes the market for a particular illegal good and service, a regulated market, etc.

● 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 alleviate the social problem

through free market operations of supply and demand.

● Discuss the risks of introducing market mechanisms of supply and demand in situations where

ethical issues are present.

Criteria

● Your Assignment should have a cover sheet with the following information: Title of the paper,

your name, course and section number, and date

● It must be a minimum of 5 pages long (excluding title page, references, etc.)

● Be sure to include the criteria located in the rubric below within your paper.

● It must be APA formatted with citations to your sources and your last page should list all

references used. (Review the APA formats found in the  Writing Center)

● You must use a variety of three objective, high quality, and current sources. Peer reviewed

articles, articles published in journals, textbooks, and library resources found in the KU Library

are examples of high quality resources.

● Note that Wikipedia, Investopedia, etc. are not considered as reliable resources for this

research.

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