Ethics Midterm

Considerations to follow in determining what the moral thing to do might be are: a. You must determine what alternative actions are available. b. You must estimate the direct and indirect costs and benefits the action would produce for all involved in the foreseeable future. c. You must choose the alternative that produces the greatest sum total of utility. d. All the above e. A & C

d. All of the above

Rawls Principle of equal liberty includes: a. Right to vote b. Freedom of speech c. Freedom of arbitrary arrest d. All of the above e. None of the above

d. All of the above

Which if the following is based on the moral norms and principles that say all human being are empowered to do something or have something done for them? a. Human rights b. Legal rights c. Constitutional rights d. Jurisdictional rights

a. Human rights

Which of the following best describes a valued disposition of a good human being, exhibited in the person's habitual behavior? a. Moral virtue b. Vice c. Action-based focus d. Utilitarianism

a. Moral virtue

According to the dictionary, the term ethics has a variety of different meanings. One of its meanings is: The principles of conduct governing an individual or a group. a. True b. False

a. True

Casuistry uses those previous clear cases to decide what is ethical in a new situation. It requires us to decide whether the previous paradigm case was similar enough to our current situation, then we make the decision how to make the decision. a. True b. False

a. True

Cost-benefit analysis is used to determine the desirability of investing in a project (such as a dam, factory, or public park) by figuring whether its present and future economic benefits outweigh its present and future economic costs. a. True b. False

a. True

Ethical relativism is the theory that, because different societies have different ethical beliefs, there is no rational way of determining whether an action is morally right or wrong other than by asking the people of that society what they believe. a. True b. False

a. True

In a perfectly free competitive market, no buyer or seller has the power to significantly affect the price of a good. a. True b. False

a. True

In a perfectly free economy, all buyers and sellers are utility maximizers: Each tries to get as much as possible for as little as possible. a. True b. False

a. True

Intrinsic goods are things that are desired for their own sake, such as health and life. a. True b. False

a. True

John Maynard Keynes believed that the institutions of capitalism engender selfishness, materialism, and competitiveness. a. True b. False

a. True

Locke's view that labor creates property rights has been influential in the U.S. a. True b. False

a. True

Monopolistic markets and their high prices and profits violate capitalist justice because the seller charges more than the goods are worth. Thus, the prices the buyer must pay are unjust. a. True b. False

a. True

Negative rights are defined entirely in terms of the duties others have not to interfere with you. a. True b. False

a. True

Proponents of the Antitrust View argue that prices and profits in highly concentrated industries are higher than they should be. By breaking up large corporations into smaller units, they claim, higher levels of competition will emerge in those industries. a. True b. False

a. True

Rule utilitarianism looks only at moral rules of a particular action. a. True b. False

a. True

The "Loyal Agent Argument" states: An employer would want to be served in whatever ways will advance his or her self-interests. Therefore, as a loyal agent of his or her employer, the manager has a duty to serve his or her employer in whatever ways will advance the employer's self-interests. a. True b. False

a. True

The "fraud triangle" indicates that the most important factors that tend to lead to price-fixing are pressures and incentives, opportunities, and rationalizations. a. True b. False

a. True

The basic problem underlying the views of the social Darwinist is the fundamental normative assumption that survival of the fittest means survival of the best. a. True b. False

a. True

Under TRIPS, patents for new products expire after 20 years. a. True b. False

a. True

Utilitarianism is attractive to many because it matches the views we tend to hold when discussing governmental policies and public goods. a. True b. False

a. True

When a seller charges different prices to different buyers for identical goods or services with the purpose of destroying a competitor, this behavior is known as predatory price discrimination. a. True b. False

a. True

Which of the following approaches to ethical decision-making is based on the idea that a course of action produces the most benefits over costs for everyone affected? a. Utilitarianism b. Fairness c. Virtue d. Justice

a. Utilitarianism

The common definition of price fixing is: a. When companies agree to set prices artificially high. b. When companies agree to limit production. c. When a company sells a buyer certain goods only on condition that the buyer also purchases other goods from the firm. d. When companies agree to limit production.

a. When companies agree to set up prices artificially high.

Which type of rights are outcomes of a specific transaction between particular individuals? a. Positive b. Contractual c. Moral d. Utility

b. Contractual

Social Darwinists had a different take on the utilitarian justification for free markets. They argued that economic competition would not produce human progress. a. True b. False

b. False

Though business ethics covers a variety of topics, three basic types of issues are: a. Systematic, corporate and public b. Systematic, corporate and individual c. Individual, group and social d. None of the above

b. Systematic, corporate and individual

So-called primitive societies used economic systems based on_______________. a. Small business organization. b. Tradition -based societies. c. Barter systems. d. None of the above.

b. Tradition-based societies.

Modifying Locke's views on free markets, Adam Smith's arguments rest on __________arguments that unregulated markets and private property will produce greater benefits than any other system. a. Kantian b. Utilitarian c. Communist d. None of the above

b. Utilitarian

Immanuel Kant's principle, called the categorial imperative, requires that everyone be treated as: a. A free and equal person b. A dependent employee c. an indentured person d. A non-resident employee

c. A free and equal person

When companies get together to fix prices, this reproduces the effects of a _________. a. A consortium of suppliers. b. An oligopoly. c. A monopoly. d. None of the above.

c. A monopoly.

Which of the following best explains the idea of distributive justice? a. Punishments and penalties should be given to all those who do wrong. b. The larger the injustice, the more compensation an injured party should receive. c. Equals should be treated as equals; those who are not equal should be treated differently. d. Punishment should be greater for those who intentionally do wrong.

c. Equals should be treated as equals; those who are not equal should be treated differently.

According to Locke, the power of government should be: a. Expanded to meet the needs of all citizens. b. Expanded to meet the needs of corporations. c. Limited, extending only far enough to protect basic rights of all citizens. d. Limited, extending only far enough to protect the basic rights of corporations.

c. Limited, extending only far enough to protect basic rights of all citizens.

Which of the following is defined as standards of what a group or individual feels is right or wrong, or good or evil? a. Morality b. Ethics c. Mitigating factors d. Knowledge

c. Mitigating factors

Many economists now advocate retaining the market system and private property while modifying their workings through government regulation. This is known as a: a. Pure capitalist economy b. Evolutionary economy c. Mixed economy d. Free market economy

c. Mixed economy

Which of the following best describes the criteria by which we judge manners and rules of behavior? a. Ethical norms b. Moral norms c. Nonmoral standards d. Standard values

c. Nonmoral standards

When a buyer purchases a good, each additional item of a certain type is less satisfying than the earlier ones. This is known as: a. The principle of increasing marginal utility b. The principle of gross marginal utility c. The principle of diminishing marginal utility d. The principle of consumer awareness

c. The principle of diminishing marginal utility

Efficiency comes about in perfectly competitive free markets when: a. Firms are motivated to invest resources in industries with a high consumer demand and move away from industries where demand is low. b. Firms are encouraged firms to minimize the resources they consume to produce a commodity and to use the most efficient technologies. c. Commodities are distributed among buyers such that buyers receive the most satisfying commodities they can purchase, given what is available to them and the amount they have to spend. d. All the above e. A & B

d. All the above

Smith's utilitarian argument is most commonly criticized for making what some call unrealistic arguments. a. Smith assumes that no one seller can control the price of a good. b. Smith assumes that the manufacturer will pay for all the resources used to produce a product. c. Smith assumes that humans are motivated only by a natural, self-interested desire for profit. d. All the above e. B & C

d. All the above

Which of the following are characteristics of a perfectly free economy? a. There are numerous buyers and sellers, none of whom has a substantial share of the market. b. All buyers and sellers can freely and immediately enter or leave the market. c. Every buyer and seller has full and perfect knowledge of what every other buyer and seller is doing, including knowledge of the prices, quantities, and quality of all goods being bought and sold. d. All the above e. B & C

d. All the above

Which of the following best describes an organization's obligations toward society? a. Ethics b. Morals c. Values d. Corporate social responsibility

d. Corporate social responsibility

Karl Marx offers the most critical view of modern private property and free market institutions. Marx claims that free-market capitalism necessarily produces: a. Extremes of inefficiency b. Extremes of efficiency c. Extremes of equality d. Extremes of inequality

d. Extremes of inequality

Which of the following best describes hypernorms as moral standards? a. Norms that differ from one community to the next b. Norms that can only be applied if the community accepts those norms c. Norms that a community accepts because it follows rules of microsocial norms. d. Moral standards that should be applied to all people in all societies

d. Moral standards that should be applied to all people in all societies

When a company sells a buyer certain goods only on condition that the buyer also purchases other goods from the firm, this is known as: a. Manipulation of supply. b. Exclusive dealing arrangements c. Price discrimination d. Tying arrangement

d. Tying arrangement

Major problems with the utilitarian reliance on measurement include: a. Comparative measures of the values things have for different people cannot be made; we cannot get into each others' skins to measure the pleasure or pain caused. b. All benefits and costs are possible to measure. c. The potential benefits and costs of an action cannot always be reliably predicted. d. All the above e. A & C

e. A &C

Moral standards can be distinguished from non-moral standards using the following characteristics: a. They deal with matters that can seriously injure or benefit humans. b. Are not established or changed by authoritative bodies. c. They are based on impartial considerations. d. A & C e. All the above

e. All of the above

Ricardo looks to which rule setter to normalize trade? a. World Trade Organization. b. World Bank. c. International Monetary Fund. d. B&C. e. None of the above.

e. None of the above