How is an equilibrium price reached in a fully functioning free market system?

Agreeing or disagreeing
Paper instructions:
“General Instructions for Lesson Quizzes,” which are posted in Blackboard, are applicable to this Quiz. Review
them carefully.
As with most Lesson Quizzes, this one could typically be done in two single-spaced pages or less. Two full pages is
probably on the long side, half a page is probably a bit short. As discussed in the General Instructions, a lot depends
on the style of the student, the nature of their answer, and what an individual student needs to write to clearly
express his or her answer. Remember: No fluff. What I care about is the quality of the content of an answer. Note
that I have tried to make the task vivid by using the little scenario I have set out below. That does not mean that I
am not asking you a serious, and very specific, question. I am. You can answer as if you are speaking directly to Sam
or not—it’s your choice. Just don’t get carried away with theatrics or slang modes of expression. I am asking a very
serious, specific, carefully-constructed question. Keep that in mind.
Imagine that you are sitting around one Saturday night with your friend, Sam*, discussing “life, the world, and
everything.” Actually, Sam has been doing most of the talking, and you have been doing most of the listening. This is
the way it usually goes. Sam has no shortage of opinions, and is not the least bit shy about sharing them.
Sam has been holding forth for some time, and winds up his/her monologue by emphatically saying: “… all you have
to do is follow your moral compass. That’s all there is to it! Why can’t people just see that?” After that, Sam stops for
a moment to catch his/her breath and shake his/her head disapprovingly at the deplorable ignorance of the other
members of the human race.
Then you see that Sam, having caught his/her breath, is composing him/herself to launch into another monologue.
You feel like you can’t take any more. You’ve got to say something, if only because you’re tired of being talked at by
Sam. In fact, you are not even sure if you agree with what Sam has just said. As it happens, you have also been
thinking about our study of Sulmasy’s article in this class. You decide to respond to Sam on this very basis (i.e. in a
manner consistent with Sulmasy’s views as we have studied them in this course). What do you say to Sam? Do you
express agreement or disagreement with Sam? Explain. In so
3. Discuss the advantages and disadvantages of centralized and decentralized organizations.


4. What are the financial management responsibilities of the Chief Financial Officer (CFO) and CNE? Explain how the CFO relates to the CNE.


5. What is responsibility accounting? What is a responsibility center?

6. What is the essence of economics?


7. How is an equilibrium price reached in a fully functioning free market system?


8. Suppose that preventive health care could lower the incidence of hospitalization. What incentive could insurance companies provide to their insured population to improve their preventive health care?


9. Is the fact that all people in society do not have access to the best medical care indicative of failure of the free market?