Test #2 Business Ethics...Addie

Smith's argument is most commonly criticized for making what some call unrealistic arguments.

A) Smith assumes that the manufacturer will pay for all the resources used to produce a product. B) no one seller can control the price of a good. C)All of the answers listed D)Smith assumes that humans are motivated only by a natural, self-interested desire for profit.

Which environmental statement is true?

An American consumer can cause more tropical rain forest destruction than a poor person living within the forest itself.

The saving or rationing of natural resources for later use is referred to as:

Conservation

The concept of the "invisible hand" means

Each person's private pursuit of wealth will result in the most beneficial overall organization and distribution of economic resources.

Because our environment is so complex and its parts are so interwoven, many theorists believe that our duty to protect the environment extends beyond the welfare of humans to other nonhuman parts of the system. This idea is called

Ecological ethics or deep ecology

Acid rain is caused by:

Fossil fuels

According to Locke, the power of government should be:

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

The release of CFCs into the atmosphere may lead to several hundred thousand new cases of skin cancer each year and destroy many valuable food crops. Also, ocean plankton-on which the entire ocean's food chain depends-may be severely damaged. This is referred to as:

Ozone depletion

The undesirable and unintended contamination of the environment by the manufacture or use of commodities is commonly referred to as:

Pollution

Decisions made in a system primarily based on markets

Private companies make the main decisions about what they will produce and who will get it.

__________is privacy with respect to a person's inner life. This includes the person's thoughts and plans, personal beliefs and values, feelings, and wants.

Psychological privacy

The consumers who think ahead, consider, and watch every penny they spend, knowing how their choices will affect their preferences are known as:

Rational utility maximizers

_____________refers to the consumption of finite or scarce resources.

Resource depletion

Which of the following nations form the members of NAFTA?

The United States, Canada, and Mexico

Which of the following provides the foundation of the case for free trade?

The theory of comparative advantage

Karl Marx believed that

Under capitalism workers are alienated in several ways.

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.

Utilitarian

A basic premise of Adam Smith's is

We can secure what we need from others only by offering them something they need from us.

Critics of advertising contend that

advertising rarely gives consumers much useful information.

Utilitarians

are likely to oppose factory farming

The philosopher Tom Regan

claims that no one could approve of the treatment of animals in factory farms if they knew what was going on.

People generally speak of two kinds of warranties. What are these two kinds of warranties?

express and implied

Business has considered the environment to be

free and nearly limitless.

International trade has the potential to ____ the availability of goods and services to ____.

increase the availability of goods and services to all nations. ........increase; all nations

The moral theorist William T. Blackstone claims that the right to a livable environment

is a fundamental human right.

Industrial waste

is a massive source of pollution.

A country is said to have an absolute advantage in the production of a good when:

it can produce the good using fewer resources than another country.

Which of the following has occurred as a result of NAFTA?

living standard in member nations have improved

The "tragedy of the commons" is

that individual pursuit of self-interest can sometimes make everyone worse off.

According to the anthropocentric (or human-oriented) ethic,

the Grand Canyon is valuable only because people care about it.

In consideration for the obligation to others

the U.S. uses more than its proportional share of the world's resources.

Due care is

the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer.

Advertising is best known for

the persuasion to purchase the product.