The First Step in the Simplified Three-Step Model for Applying

question 63

Short Answer

The first step in the simplified three-step model for applying ethical judgments to situations that may arise during the course of business activities is to
determine the norms that relate to the situation.
determine the most appropriate moral values.
determine the implications of breaching the activity or policy.
gather the relevant factual information.
make an ethical judgment based on the rightness or wrongness of the proposed activity or policy.

Identify factors influencing consumer purchasing decisions such as willingness to pay and market price.

Recognize the relationship between consumer surplus and market dynamics including price and quantity.

Distinguish between elastic and inelastic demand and their impacts on consumer behavior.

Analyze the effects of changes in preferences and market price on consumer surplus.

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Definitions:

Opportunity Cost

the value of the best alternative that is foregone when making a decision, representing the benefits that could have been received by taking a different path.

Painting

The process of applying pigment to a surface using tools such as brushes, to create an artistic expression.

Baking Cakes

A process of cooking food by dry heat, especially in an oven, applied specifically to the creation of cakes.

Comparative Advantage

An economic principle that describes the ability of a country or individual to produce a particular good or service at a lower opportunity cost than others.