QUIZ 1 & QUIZ 2 Questions Graded A+

In the US, blood donors can be compensated. In the UK, they cannot. Michael Sandel cites a study comparing these two systems and showing that the British system had less waste, contamination, cost, and shortages than the American system. Sandel uses this example, and other similar cases, to claim that: -Turning a gift into a commodity for sale changes the meaning of the exchange. -We need ethical reflection in economics to help us determine the appropriate limits of the marketplace. -Sometimes, extrinsic marketplace motivation crowds out intrinsic moral motivation. Traditionally, the day after Thanksgiving, or 'Black Friday,' is one of the busiest days of the year for American retailers. REI, an outdoor clothing and equipment retailer, has chosen in recent years to close all the company's stores on Black Friday. It calls this initiative 'Opt Outside.' The company sees it as a way of encouraging both employees and potential customers to spend time with family or friends in nature, instead of devoting the day to shopping indoors. Under each of the following assumptions, how would Milton Friedman, the shareholder theorist, evaluate this initiative?