MANAGEMENT EXTRA CREDIT ASSIGNMENT
Haradan Mansha
December 10, 2020
Question:
A growing number of businesses including video games developers,
cigarette companies, soft drink producers, liquor marketers and
fast-food businesses are feeling the heat from the government, the press
and society at large for encouraging harmful consumer habits. But in our
free market economy, People are free to choose the products they
consume. Where does personal responsibility end and corporate
responsibility begin? How does your response change across specific
industries? What role if any do you believe the government should play?
Develop a rationale for each answer.
Answer:
According to Economists, the free-market economy is defined as an
economy that is controlled by the market forces, supply and demand.
Supply of goods refers to the amount of goods or product available in the
market for consumption whereas demand refers to the amount of goods
that consumer is demanding and has the ability to pay for it. Both supply
and demand are important factors of the market economy as they
impact greatly on consumer goods and price. According to the market
forces, at some point of time, where supply equals demand, it is called
the equilibrium point, where there is perfect economic stabilisation. The
free-market economy has characteristic such as
●Private ownership
