Is It Morally Wrong to Make Extortion Payments in Foreign

question 16

Essay

Is it morally wrong to make extortion payments in foreign countries in which such payments are very common? Explain.

---

Definitions:

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less expensive alternatives due to a change in relative prices.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

The change in consumption that results from a change in the relative price of goods, leading consumers to substitute away from higher-priced goods.

Income Effect

The income effect describes the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.