or False

1According to one perspective of business ethics, no one other than business managers and owners may claim to have a stake in the business decisions managers make.

A)TRUE

B)FALSE

2The free market view holds that maximizing profits for its shareowners and providing the public with the goods and services they want, is enough to satisfy a business’ social responsibility.

A)TRUE

B)FALSE

3The common understanding of business social responsibility is that business owners may well have to sacrifice profits if the well-being of its employees and the community it operates in demands it.

A)TRUE

B)FALSE

4Because the language of ethics is so different from talk about the operational fields of finance, marketing, accounting, management, law, and human resources, ethical concepts and categories are not relevant to these fields.

A)TRUE

B)FALSE

5Because people already know right from wrong, the study of business ethics is simply an unprofitable exercise.

TRUE

True or False no Why Study Ethics 1 347041 1

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A)

B)FALSE

6If something is seriously wrong, the law will prohibit it. Consequently, it’s enough to rely on the law for deciding what’s right or wrong.

A)TRUE

B)FALSE

7What people do value and what they should value are not necessarily the same

A)TRUE

B)FALSE

8The major reason to study ethics is that whether or not we examine the questions “what should I do?” or “what type of person should I be?” or “how shall we live in community?” we answer them in the course of living our everyday lives.

A)TRUE

B)FALSE

9As long as individuals follow the mores, customs, and rules of their culture or society, they are assured that their actions are ethically correct.

A)TRUE

B)FALSE

10Philosophical ethics distinguishes what people do value from what they should value.

A)TRUE

B)FALSE

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Which statement correctly reflects the free market view of business social responsibility?

A)In addition to making a profit, businesses are just as responsible for seeing to the well-being of their employees and the communities in which they operate

B)No one other than the managers and owners of a business may claim to have any stake in the business decisions managers make.

C)In the process of providing goods and services to customer who need and want them and maximizing profits for its shareowners, a business fulfills its social responsibility

D)A business is responsible for maximizing profits for its shareowners, but, in special circumstances, may have to sacrifice profits in the interest of the community whose citizens depend on it for employment.

2Which of the following statements is decisive in determining whether or not to study business ethics?

A)Business managers don’t need to study ethics in order to know how to treat employees, shareowners, and customers.

B)Business and ethics simply don’t mix. In the final analysis, self-interest represented by profit overrides the interests of employees, customers, and communities. Opinion and sentiment get in the way of efficient business decision-making.

C)Ethical concerns are as unavoidable in business as are concerns of marketing, accounting, finance, and human resources. Formal study of business ethics helps address these concerns so that decisions of right and wrong may be made deliberately. and conscientiously

D)The answers to ethical questions are clear-cut enough; all business people already know right from wrong.

3Which statement correctly describes the relationship between philosophical ethics and ethos?

A)Individuals who obey the conventions, mores, and rules of their cultures are already acting ethically. No further philosophical reflection is required.

B)Philosophical ethics distinguishes what people do value from what they should value.

C)What people do value and should value are, for all practical purposes, the same.

D)Philosophical ethics is too abstract to be useful in everyday life situations. Following the mores and customs of one’s culture is a more dependable way to make moral decisions.

Which statement does not reflect the idea of ethical relativism:

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A)All opinions are equal; no one can say what is ethically right or wrong.

B)One's culture, society, or personal feelings are the only criteria for deciding what is ethically right or wrong.

C)Determining what is ethically right or wrong is a process of arguing from an appeal to values and principles that justify and legitimize an opinion.

D)Philosophical ethics is simply a process of clarifying values, not a process of justifying them.

2Which of the following intellectual disciplines provides absolute proof of its conclusions?

A)The social, biological, meteorological, and medical sciences.

B)Ethical judgments based on well-reasoned arguments from sound moral principles.

C)The applied sides of engineering, chemistry, and physics.

D) All of the above.

E) None of the above.

3Which statement is a correct view of psychological egoism?

A)While our own interests are important, they make sometimes have to give way to the interests of others.

B)Psychological egoism makes claims about how people should act.

C)If psychological egoism is true, we should abandon ethics.

D)Psychological egoism does not claim to provide an accurate descriptive account of human behavior.

4Identify the statement that is consistent with utilitarian ethical theory:

A)Adhering to a set of principles may well forbid an act that would otherwise provide overall net good consequences.

B)No act is ever morally right or wrong in all cases, in every situation. It will all depend on the act's consequences.

C)Some actions like murder, theft, rape, and lying are wrong of their very nature, the kind of acts they are. No amount of net good consequences could ever justify them.

D) The end never justifies the means.

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Which statements are legitimate challenges to utilitarian ethical theory?

A) The end may justify the means.

B)There is no consensus among utilitarians on how to measure and determine the overall good.

C)It is difficult to know how to consider the consequences for all the parties that will be affected by an act.

D)It is difficult for the utilitarian to find a balance between individual freedom and the overall good. The more utilitarians emphasize freedom the more likely they hold more relativistic accounts of the good.

E) All of the above.

F) None of the above.

6Which of the following reasons accounts for utilitarianism's dominance among policy makers and administrators?

A)It seems obvious that policy questions should be judged by results and consequences.

B)Policy experts at all levels are focused on results and getting things done.

C)Efficiency is simply another word for maximizing happiness.

D)Policy experts focus on the collective or aggregate good.

E) All of the above.

F) None of the above.

7Which proposition correctly describes the concept of a right?

A) Rights protect a person's wants.

B)There is really no distinction between a person's wants and interests. Rights protect both.

C) Rights protect a person's interests.

D)My rights never correspond to your duties and your duties never correspond to my rights.

8Which statement is not true of deontological ethics?

A)Obligations, responsibilities, and commitments determine the correct approach to ethics.

B)While we are committed to the dignity and well-being of individuals, an individual may have to sacrifice his or her rights in order to generate a net increase in the collective good.

C)Certain acts are wrong and should not be performed, regardless of the overall happiness they may

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produce.

D) The end does not justify the means.

9Which statement is not true of Kant's categorical imperative:

A)We should act only on maxims that can be universally accepted and acted upon.

B)Universalization of maxims prohibits us from giving our personal point of view privileged status over the points of view of others.

C)Our fundamental ethical duty is to treat other human beings as autonomous persons who may choose their own ends and purposes, not simply as means for the ends of others.

D)The inability to universalize the maxim of an act may sometimes be ignored if the act in question will produce the greatest good for the greatest number.

10According to ethical relativism, there is no right or wrong except in terms of what a particular culture or society practices or what a person's feelings about an issue are. Values such as equality, fairness, integrity, self-respect, and freedom from coercion are simply a matter of personal or social opinion.

A)TRUE

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B)FALSE

2Mathematics, the more theoretical side of physics, engineering and chemistry, and all ethical judgments based on careful logical analysis and reasoning provide us with conclusions that are absolutely certain and beyond doubt.

A)TRUE

B)FALSE

3Because psychological egoism and ethical egoism both focus on what is in the individual's self interest, there is really no difference between them.

A)TRUE

B)FALSE

4The claim by psychological egoism that human beings act only out of self-interest is irrefutable.

A)TRUE

B)FALSE

5Because utilitarianism focuses on consequences, producing the greatest happiness for the greatest number, as the sole criterion for determining ethical right and wrong, no action is ever right or wrong in itself, in all cases, in every situation—even, perhaps, murder, rape, theft, deceit and lying.

A)TRUE

B)FALSE

6Deontological ethics refers to the concept that certain duties: obligations, commitments, and responsibilities, not consequences, determine the correct path to ethical decision-making.

TRUE

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A)

B)FALSE

7Deontological ethics might allow the sacrifice of individual rights if the overall good demanded it.

A)TRUE

B)FALSE

8According to Kant, any action's maxim that cannot be universalized is ethically wrong. and should not be performed.

A)TRUE

B)FALSE

9One way to understand rights is to identify them with a person's wants. Rights protect these wants even though, objectively, they may conflict with what is really good for a person.

A)TRUE

B)FALSE

10The theory of virtue ethics focuses on a full and detailed description of those character traits that would constitute a good and human life. Egoism is simply not a factor in the ethical decision-making of caring, empathetic, charitable, and sympathetic persons.

A)TRUE

B)FALSE

Which statements are characteristic of virtue ethics?

A)Our character traits are easily modified, almost on a day-to-day basis if we so choose.

B)Like Kantian ethical theory, virtue ethics requires that we disregard personal emotions and feelings.

C)Virtue ethics is about describing people as good or bad.

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D)Even if a person is caring, empathetic, charitable and sympathetic, the challenge of egoism is still a factor in his or her decision-making.

E) All of the above.

F) None of the above

The free market, classical, theory of corporate social responsibility relies on utilitarianism and the concepts of individual rights to freedom and property for its ethical justification.

A) TRUE

B) FALSE

2To use a company's resources for a project that does not contribute to maximizing profits is sometimes acceptable and even sometimes required under the classical model of corporate social responsibility.

A) TRUE

B) FALSE

3If the costs of externalities like air pollution, ground water contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties who are not involved in the exchange between buyer and seller, the exchange price does not represent an equilibrium between true costs and benefits.

A) TRUE

B) FALSE

4There is no reason to believe that ad hoc attempts to repair market failures—like determining shadow prices for unpriced social goods, or by exempting social goods from the market, or by use of the law to address social goods that are unattainable through individual choice—are socially inadequate.

A) TRUE

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B) FALSE

5According to the private property defense of the classical model of corporate social responsibility, any use of a corporation's resources for any purpose other than maximizing profits is a violation of the owners' property rights, amounts to theft.

A) TRUE

B) FALSE

6Bowie's Kantian model of corporate social responsibility obliges managers to do no harm, but they must also be prepared at times to do some good or prevent some harm.

A) TRUE

B) FALSE

7The moral minimum theory of corporate social responsibility insists on the idea that corporate rights and responsibilities can be inferred from the terms of an imaginary contract between business and society.

A) TRUE

B) FALSE

8Since the social contract theory in business presupposes an amoral beginning, i.e., excludes the idea that individuals already possess natural rights and responsibilities before the contract is established, it seems to offer few if any guarantees that certain fundamental rights will be protected under the contract.

A) TRUE

B) FALSE

9The stakeholder theory of corporate social responsibility is totally incompatible with utilitarian ethical theory because the stakeholder concept requires balancing the interests of all the parties affected by business decisions.

A) TRUE

B) FALSE

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10A wider interpretation of the meaning of a stakeholder as any affected party places an impossible burden on managers who would have to account for everyone who might be affected by a business decision.

A) TRUE

B) FALSE

The most influential theory of corporate responsibility of the past century is:

A) The moral minimum model.

B) The classical model.

C) The social contract theory.

D) The stakeholder theory.

2The ethical roots of the classical model of corporate social responsibility are found in which statement:

A)The idea that the interests of stakeholders are as important as the interests of a corporation's stockholders.

B)The free market theory which holds that managers are ethically obliged to make as much money as possible for their stockholders because to do otherwise would undermine the very foundations of our free society.

C) The ethical imperative to cause no harm.

D) The ethical imperative to prevent harm.

3Which of the following reasons might a free market economic theorist use to justify the hostile takeover of a company?

A)The takeover target company's stock is undervalued. That is evidence that the resources are being inefficiently used.

B)If current management is not maximizing profits, it is violating the utilitarian imperative to maximize the overall good.

C)The organization seeking to take over the target company will maximize profits for the stockholders and will be serving the public's interests because it is only by satisfying consumer (public) demand that a business can make profits.

D)If the takeover target's managers are using their stockholders' money to serve interests other than those of the stockholders, they are stealing from them.

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E) All of the above.

F) None of the above.

4Which of the following statements does not represent a market failure, i.e., a situation in which the pursuit of profit will not result in a net increase in consumer satisfaction?

A)The costs of pollution, groundwater contamination and depletion, soil erosion and nuclear waste disposal are borne by parties external to the economic exchange between buyer and seller.

B)Where there is no mechanism for pricing, for setting a value on, public goods, there is no guarantee that the markets result in the optimal satisfaction of the public interest in regards to public goods.

C)Situations in which externalities have been internalized result in an equilibrium in the exchange price between true costs and benefits.

D)The pursuit of individual self-interest results in a worse outcome than would have occurred had the behavior of the parties involved in the economic exchange been coordinated through cooperation or regulation rather than mere competition.

5Which statement does not support the claim that an unconditioned ethical directive such as the one the classical model of corporate social responsibility demands of business management is inappropriate for utilitarian theory?

A)Markets can work to prevent harm only by first-hand experience with harms that have to occur before they can be remedied.

B)It is claimed that once market failures are adequately addressed by the government, business just needs to obey the law that addressed them. Business, however, has the ability to inappropriately influence government policy and the law.

C)Business has the ability to influence consumers' desires by helping shape those desires through advertising.

D)A more precise formulation of a utilitarian-based principle would be to maximize profit whenever doing so produces the greatest good for the greatest number, with the proviso that managers must consider the impact a decision will have in many ways other than merely financial.

6According to the private property defense of the classical model of corporate social responsibility, managers who use corporate funds for projects that are not directly devoted to maximizing profits are stealing from their owners. Which statement supports this view?

A)Property rights are restricted when they conflict with the basic rules of society as embodied in law and custom.

B)The connection between ownership and control that exists for personal property does not legally exist for

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corporate property.

C)Investors buy their stocks with the hope of maximizing return on their investment.

D)Stockholders in publicly traded corporations are better understood as investors rather than owners.

7Which statement is true of Bowie's Kantian approach to business ethics?

A)People have a duty both to not cause harm and to prevent harm.

B)Both causing no harm and preventing harm override other ethical considerations.

C)While it is ethically good for managers to prevent harm or do some good, their duty to stockholders overrides these concerns.

D)A narrow interpretation of Bowie's "cause no harm" imperative makes the duties faced by management under the neo-classical model significantly different from the classical model.

8Select the reasons, historically speaking, why the modern corporation was established as a legal entity:

A) Social benefits flow from corporate institutions.

B)Corporations provide an efficient means for raising large amounts of capital needed to produce and distribute socially desired goods and services.

C)Corporations distribute risks widely over large populations, minimizing the risk to any one individual.

D)Corporations provide individuals with efficient means for the creation of wealth and for supplying jobs.

E) All of the above.

F) None of the above.

9Which statement does not challenge the notion of a hypothetical social contract between society and corporations?

A)If the social contract presupposes an amoral beginning, it seems to offer few guarantees that certain fundamental ethical rights will be protected under the contract.

B)Micro-social contracts can be developed within particular local communities that establish the specific ethical rights and responsibilities within that community as long as they fit within the general limitations of the hypernorms governing any and all social contracts.

C)It is difficult to specify exactly what responsibilities will be drawn from this hypothetical contract.

D)If the theory already begins with certain fundamental rights and responsibilities, then the social contract may be irrelevant to providing an ethical justification for

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business' responsibilities.

10Which statement represents a challenge to Evan's and Freedman's defense of the stockholder theory against the classical model of corporate social responsibility?

A)The law now recognizes a wide range of managerial obligations to such stakeholders as consumers, employees, competitors, the environment, the disabled.

B)Courts and legislatures have recognized that the rights and interests of various constituencies affected by corporate decisions limit managers' fiduciary responsibility.

C)Stakeholder theory cannot answer the question as to how, exactly, a manager should go about balancing the diverse and competing claims of all parties.

D)There is no guarantee that when managers produce profits they will serve the interests of either stockholders or the public.

Just as many economists and social scientists predicted in the early 20th century, workers have decreased the amount of time they spend working.

A) TRUE

B) FALSE

2The value of housework and child care have systematically been undervalued because of social programs such as social security and unemployment insurance along with many public policies concerned with marriage and divorce.

A) TRUE

B) FALSE

3A job might be described simply as work in which self-identity and the activity are independent of each other.

A) TRUE

B) FALSE

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4It is its potential to be intimately connected to our deepest values that makes the meaning and value of work have important implications for the structure and operation of the workplace.

A) TRUE

B) FALSE

5Happiness, according to the hedonistic interpretation of work, is the enjoyment of cultural activities.

A) TRUE

B) FALSE

6Both the human fulfillment and classical interpretations of the meaning of work believe that work is the primary means for developing human potential.

A) TRUE

B) FALSE

7According to the human fulfillment model, the psychological and social benefits of work do not reduce to merely subjective and personal values.

A) TRUE

B) FALSE

8Karl Marx was sure that industrial capitalism inevitably, necessarily, alienates workers from the product of their work, from the creative process of work, and from their very essence as social creatures.

A) TRUE

B) FALSE

9Both liberals who believe that the ethical assessment of work should be based on how work affects the workers' ability to make free and autonomous decisions about their lives and the human fulfillment school that makes that judgment on the basis of what makes a good meaningful human life are saying essentially the same thing.

A) TRUE

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B) FALSE

10The idea that the meaning and value of work is whatever the workers determine that it is simply doesn't challenge in any significant way Bowie's contention that employers have an obligation to provide meaningful work.

A) TRUE

B) FALSE

Which statement is not characteristic of the industrial model of work?

A)Employees receive steady employment, secure wages and benefits, and opportunities to advance within the firm.

B)Jobs are temporary, often part time, often filled by entrepreneurial and freelance workers.

C)Employees receive the benefits of increased productivity created by a stable and competent work force.

D) Work activities are highly structured and routinized.

2Which words have never been used to describe work?

A) Exalting.

B) Fulfilling.

C) Degrading and tedious.

D) Troublesome.

E) All of the above.

F) None of the above.

3Select the statement that does not represent one of the common aspects of the contemporary work scene:

A)Workers have significant choices and alternatives open to them in the workplace.

B)More jobs today are temporary, part-time, or subcontracted out to third parties.

C)Most workers will likely have no more than one or two jobs in a lifetime.

D)The social values of work such as camaraderie and social status are lost to part-time and temporary workers.

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4The classical interpretation of work is best described by:

A) Humans are intellectual, yet work is physical.

B) For cultured and civilized people, work is undignified.

C) Humans are free beings; work is a necessity.

D) Work diminishes human nature and human potential.

E) All of the above.

F) None of the above.

5Which of these statements does not describe the hedonistic interpretation of work?

A)Work is the price we pay to get the necessities of life and other things that make life pleasurable.

B) Happiness is the enjoyment of cultural activities.

C) There is no specific content for human happiness.

D)Individuals are allowed to choose whatever ends they desire.

6Which statement about the issues confronting business ethics in its effort to articulate the type of work than can foster the full development of human potential is not true:

A)Not every job contributes to the development of human potential.

B)The proper kind of workplace contributes to human development.

C)Jobs do not have the potential for influencing and shaping individuals.

D) Individuals exercise control over jobs.

7A true expression of Marx's concept of alienation is:

A) Alienation is the result of low wages.

B)Alienation is the result of work that prevents the full development of human potential.

C)Alienation means the separation and distinction of one social class from another.

D)The capitalistic system does not inevitably mean a life of alienation for workers.

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8Select the statement that fails to describe the human potentials that work can fulfill:

A)Work provides the occasion for developing talents and exercising creativity.

B)Through work, humans create their own society and culture and thereby their own identities.

C) Work expresses our nature as social beings.

D)Work allows us to experience our freedom and autonomy in making choices and directing our lives.

E) All of the above.

F) None of the above.

9Indicate the statement that is not consistent with Bowie's liberal theory of work:

A)One of the moral obligations of a firm is to provide meaningful work.

B)It is a simple enough task to find a justification for any objective, normative definition of meaningful work.

C)Meaningful work defined as nothing more than what employees say it is, is a subjective and individualistic definition of work.

D)The more people are compelled to work, the greater the responsibility to make sure that workplace conditions are as humane as possible.

10How might a liberal have to respond to the suggestion that some workers might prefer to work at highly routinized, unchallenging, and boring jobs?

A) Employers have no choice but to eliminate these jobs.

B) Employers have no obligation to eliminate these jobs.

C)These jobs do not necessarily suppress the human faculties of rational and autonomous choice.

D)While it may be true, on the one hand, that as long as no one is forcing employees to do these jobs, employers don't have to eliminate them, it is also true that accepting the ethical legitimacy of these jobs violates the fundamental values of rational and free choice.

One meaning of "employee rights" is that employees have claims independently of any particular legal system, claims that originate from the respect due them as human beings.

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A) TRUE

B) FALSE

2Without collective bargaining, employers would have a stronger incentive to compromise with individual employees on levels of wages and benefits.

A) TRUE

B) FALSE

3The idea of government providing a job for everyone makes sense only if it means the responsibility to provide jobs that are compatible with qualifications to those who can't find a job in the private sector.

A) TRUE

B) FALSE

4The employment at will doctrine means, essentially, that unless a specific contract states otherwise, an employer has the right to hire and fire an employee for any reason whatever and the employee has the right to quit a job at any time.

A) TRUE

B) FALSE

5According to Norman Bowie, employers have an obligation to provide jobs for individuals and structure the workplace so that workers can exercise their autonomy, their independence.

A) TRUE

B) FALSE

6Rather than specifying every acceptable and unacceptable reason for dismissing an employee, "due process" refers to the procedures employers must go through before dismissing workers.

A) TRUE

B) FALSE

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The private property rights of business make it doubtful that it derives its coercive power from the consent of the governed even in societies where individuals are respected as autonomous, free decision makers.

A) TRUE

B) FALSE

8Stockholder rights raise a relevant objection to the participation of workers in management decisions only if such participation threatens a stockholder's investment.

A) TRUE

B) FALSE

9It is simply too much to ask of employers to provide an ideally safe workplace.

A) TRUE

B) FALSE

10Information about employees that is gathered through such technologies as polygraphs, drug-testing, surveillance, psychological tests or electronic monitoring may sometimes have to include information that is not ordinarily job-relevant and legitimately knowable by the employer if the employer thinks the overall good of the business might someday require it.

A) TRUE

B) FALSE

Which of the following goods are removed from the employment contract by legal rights?

A) Wages and benefits.

B) Wages set at less than the legal minimum wage.

C) Working conditions.

D) Agreements on productivity standards.

2Which of the following moral rights could be waived in order to get a job or an increase in employment benefits?

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A) Protection against sexual harassment.

B) A safe and healthy workplace.

C)Wage levels required for a decent, humane level of existence.

D) Plans for a family.

E) All of the above.

F) None of the above.

3Identify the proposition that challenges the argument for mandatory union membership:

A)Mandatory union membership allocates the benefits and burdens of union membership in a fair and equal manner.

B)Whoever receives benefits from a process that entails costs should share in the cost of providing those benefits.

C)Bargaining between employer and employees will be equal only if the employees bargain for wages and benefits as individuals.

D)Bargaining between employer and employees will be equal only if the employees bargain for wages and benefits collectively.

4Determine which statement defends the idea that private employers do not have an obligation to provide jobs for others:

A)Everyone needs a job to be able to satisfy his or her instrumental and psychic needs.

B)The economic system of a society exists, fundamentally, for the well-being of that society's members.

C)Employers have rights, although limited, to property and also have their own right to work.

D)If citizens have a right to a job to fulfill their instrumental and psychic needs, then some public institution has the obligation to provide those jobs. Private employers can fulfill that obligation more efficiently than government.

5Select the statement or statements that represent an erosion of employment at will as a legal doctrine:

A)Federal and state constitutions grant employees rights against the government as their employer.

B)Union employees are protected from arbitrary dismissal by their union contracts.

C)Civil rights laws protect employees from being fired because of race, or sex, for example.

D)Federal and state laws protect employees who blow the whistle on certain illegal or unethical acts committed by their employers.

E) All of the above.

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F) None of the above.

6A procedural account of due process would preclude:

A)prior warnings, documentation, and written performance standards;

B)a list specifying beforehand every possible reason for dismissal and distinguishing them from unacceptable reasons;

C) probationary periods;

D)an appeal process and an opportunity to respond to allegations.

7Which statement fails to provide a valid reason in support of John McCall's claim that employees have a right to participate in management decisions?

A)Human dignity is tied to the ability of humans to guide their own lives and control their own destinies.

B)Fairness demand that each and every person affected by a managerial decision must have an opportunity to represent his or her own interests.

C)Employees who participate in and contribute to decision making are less likely to suffer alienation and burnout.

D)Institutions that encourage and honor employee participation will foster psychic goods of self-worth and self-respect among employees.

E) All of the above.

F) None of the above.

8Select the statement that might represent a valid objection to worker participation in management decisions:

A)Private owners have property rights that include the right to manage and direct the business.

B)Workers lack the expertise and knowledge to manage a business.

C)Substantial conflicts that exist between the interests of the firm and the interests of the employees are more likely to occur than similar conflicts between the interests of managers and the interests of the firm.

D)Any attempt to involve employees in decision making will be inefficient.

9According to the free market and classical models of corporate social responsibility, individual bargaining between employees and employers would be the best approach to workplace health and safety. Which statement does not support that approach?

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A)Employees are perfectly free to decide what level of risk they are willing to accept for a corresponding level of wages.

B)In a competitive free market, individual bargaining would result in the optimal distribution of safety and incomes.

C)The means the market uses to gather information about risks is to observe the harms done to the first generation exposed to imperfect market transactions, market failures.

D)The threat of compensatory payments acts as an incentive for employers to maintain a reasonably safe and healthy workplace.

10Select the statement that does not reflect the connection between the two senses of privacy as a right to be "left alone" and privacy as a right to control information about oneself:

A)Certain decisions we make about how we live our lives play a crucial role in defining our personal identity.

B)Privacy establishes the boundary between individuals and thereby serves to define one's individuality.

C)The right to control certain very personal decisions and information has little relevance to determining the kind of person we are and the person we become.

D)To the degree that we value treating each person as an individual we ought to recognize that certain personal decisions and information are rightfully the exclusive domain of the individual

While the fiduciary relationship creates reciprocal responsibilities between employer and employee, the primary responsibilities, legally speaking, lie with the employees who owe the employer duties of loyalty, obedience, and confidentiality.

A)TRUE

B)FALSE

2An agent is a person who acts on behalf of another person, so all agents are, in effect, employees.

A)TRUE

B)FALSE

3The fact that employees take on special role-specific responsibilities within an economic system that benefits everyone is one reason offered for the claim that these

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responsibilities override other ethical considerations.

A)TRUE

B)FALSE

4One reason why a blanket obligation for all employees to obey their employers no matter what is unreasonable is that the choice of obeying someone's command or jeopardizing one's job is fundamentally coercive, and thus the consent involved is not fully free.

A)TRUE

B)FALSE

5Some interests of managers that stem from their responsibilities as managers constitute an unethical conflict for them.

A)TRUE

B)FALSE

6In Ronald Duska's view, the idea that the company is not expected to sacrifice on behalf of employees but that employees are expected to sacrifice on behalf of the company, does not make the company an inappropriate object of loyalty.

A)TRUE

B)FALSE

7A business firm has a perfect right to expect, ethically speaking, that employees will sacrifice for the firm as well as keep their commitments to it.

A)TRUE

B)FALSE

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8While it is plausible that some dishonest acts, like bluffing a person in a business transaction, can have beneficial social consequences that do not threaten the stability of underlying social practices, it would be harder to claim that routine dishonesty would not erode the trust that does seem essential to social cooperation.

A)TRUE

B)FALSE

9According to Richard DeGeorge, even if a whistleblower does not have documented evidence that will convince impartial observers of a firm's role in causing harm, he or she nevertheless may still have an obligation to blow the whistle.

A)TRUE

B)FALSE

10Some observers argue that insider trading is an efficient means to disseminate accurate information about the market, that it moves the markets in the direction of equilibrium. The challenge to this argument is, however, that this is accomplished by unfair and unethical means.

A)TRUE

B)FALSE

Which of the following aspects of the relationship between Enron's special purpose entities (SPE's) and Enron itself is not particularly egregious?

A)Enron had no reason for forming SRE's other than to create a deceptive impression that it was in better financial shape that it actually was.

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B)Hedging risks by entering into agreements with oneself does not lower risks.

C) Underwriting one's own risks is not underwriting them at all.

D)Using Enron's own stock to finance the SPE's provided a very strong incentive for Enron management to keep its stock value high.

E) All of the above.

F) None of the above.

2Which statement is not true of the agency concept?

A) In actual fact, not all agents are employees.

B)Under the common law tradition of the United States, all employees are treated as agents of employers.

C)The primary responsibilities in the employer-agent relationship lie with the employer.

D)The law has described the employee-employer connection as a master-servant relationship.

3Select the statement that does not support the narrow view of non-managerial employees' responsibilities to their employer, the idea that the employer exercises a great deal of control over the nature and terms of employment with very little discretion given to the employee:

A) Employees consent to obeying managers when they take a job.

B)Employees who agree to obey employers are not truly abandoning their own responsibility.

C)The choice of obeying someone's command or jeopardizing one's job is a fundamentally coercive situation and, therefore, the consent involved is not fully free.

D)Owners have property rights and have to be protected against the harms they might suffer from employees.

4Identify the statement that does not correctly present the fiduciary relationship that is said to exist between managerial employees and employers:

A)Managers have special expertise that owners must rely on, so they are given wider responsibilities .

B) Managers are free from close day-to-day oversight by owners.

C)Because managers have greater freedom from day-to-day supervision by owners, they are not generally understood to have a strong fiduciary duty to always act in the best financial interest of the owners.

D)The legal duties of loyalty, trust, obedience and confidentiality are understood to override the manager's personal interests.

5Identify the statements that reflect the varied owner interests corporate managers are supposed

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to serve:

A)Investors buy stock because they believe in the company and its products.

B) Investors are playing the stock for short-term gain.

C)Investors see their stock ownership as an investment in a company and its technology.

D)Investors see their stock ownership as a long-term investment for personal retirement and security.

E) All of the above.

F) None of the above.

6Which statement describes a managerial action that does not unethically impose costs upon stockholders and other stakeholders?

A)The action imposes unwanted costs on stockholders and stakeholder by giving up some alternatives in favor of others in the interest of maintaining the fiscal stability of the enterprise.

B)A personal interest of a manager hinders the exercise of his or her professional judgment.

C)A portion of some payment is kicked back to the payer as an incentive to make the payment in the first place.

D)Financial advisers receive payments from a brokerage house to pay for research and legal services that should be used to benefit the advisers' clients, not the advisers' personal interests.

7Select the statement that, ethically speaking, best represents a valid concept of what loyalty to a firm means:

A)Loyalty means a willingness to sacrifice one's own interest by going above and beyond ordinary employee responsibilities.

B)Loyal employees are expected to sacrifice for the firm even though the firm is not necessarily bound to sacrifice for the employee.

C)Since the model of agency law lays a legal duty of loyalty on employees, employees clearly have a corresponding ethical responsibility to be loyal.

D)While a willingness to sacrifice might be a part of loyalty, it would seem that devotion and faithfulness to a common good is both more essential to loyalty and what explains the willingness to sacrifice.

8Identify the statement that challenges Albert Carr's analogy that, like poker, business is a game that has its own rules and, therefore, is exempt from ordinary requirements of morality:

A)Carr overestimates the prevalence and acceptability of dishonesty within business.

B)Even if business did have its own set of ethical conventions, that fact alone does not exempt it from ordinary ethical evaluations.

C)There are major disanalogies between business and games like poker that weaken the conclusions drawn from Carr's analogy.

D)Unlike poker games, individual often have no choice but to participate in business practices.

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E) All of the above.

F) None of the above.

9According to Richard DeGeorge, which statement presents a condition that makes blowing the whistle on a company not just permissible but obligatory?

A) A threat of serious harm exists.

B)The whistleblower has exhausted all internal channels for resolving the problem.

C)The harm to be prevented overrides the harm done to the firm and to other employees.

D)The whistleblower has good reason to believe that blowing the whistle will prevent the harm.

10Select the statement that is not a criticism of insider trading:

A)The insider benefits inappropriately by buying or selling the stock at a price below or above what the market will demand when the inside information is made public.

B)An insider can benefit by trading on bad news as well as good, and this might be an incentive to work against the firm's best interests.

C)The insider's action sends the correct message to the market, reflecting the stock's true value, moving the market toward equilibrium.

D)The insider's information is often used without the firm's permission in a way that harms the stockholder's interests

The legal concept of negligence focuses on the conduct and state of mind of the producers and holds them responsible for harms only when they fail to act in ways that could have prevented the harm.

A) TRUE

B) FALSE

2Even though parties freely engage in an exchange of goods or services, we cannot be sure that autonomy has been respected (the Kantian requirement) and that mutual benefit has been achieved (the utilitarian requirement).

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A) TRUE

B) FALSE

3Need for a product, or anxiety and other stress experienced during a business transaction, or price-gouging may make a consumer’s choice less voluntary, and misleading advertising or incomplete understanding of a product’s complexity may make his or her consent less informed.

A) TRUE

B) FALSE

4Given that business transactions between two parties are mutually beneficial and freely entered into, social norms of equal treatment and fairness or questions as to what social goods are promoted or threatened are not ethically relevant to the transactions.

A) TRUE

B) FALSE

5The contract model of the marketing relationship that offers a consumer only a limited or expressed warranty on a product is not really one-sided nor does it fail to meet the standards of truly informed consent because the consumer agrees to these limitations.

A) TRUE

B) FALSE

6In claiming that the concept of negligence should include the standard of the “reasonable” person who is a thoughtful, reflective, and judicious decision maker, we are surely asking no more of the average consumer than he or she is capable of giving.

A) TRUE

B) FALSE

7The legal doctrine of strict products liability is controversial because it unfairly holds a business accountable for paying damages in cases where it was not at fault.

A) TRUE

B) FALSE

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8According to McCall’s fairness argument, holding the manufacturer liable under the strict product liability doctrine is fair because the injuries caused by a product are externalities that fairness requires to be internalized in the exchange between producer and consumer.

A) TRUE

B) FALSE

9Because the efficiency benefits of large retailers can be passed on to consumers in the form of lower prices, and because a competitive market should drive out uncompetitive firms, there is no persuasive rationale for claiming that it is unethical, unfair, to force smaller stores out of businesses by temporarily pricing products under cost.

A) TRUE

B) FALSE

10Even if there are social costs involved in a transaction, costs not reflected in the price agreed to by the parties to the transaction, the fact that the price is freely agreed to means that it must still be accepted as fair and beneficial.

A) TRUE

B) FALSE

Which ethical question is not relevant to the process of marketing a product?

A)What responsibility do producers have for the quality and safety of their products?

B) Who is responsible for harms caused by a product?

C)Is the customer's willingness to pay the only ethical constraint on fair pricing?

D) Can producers discriminate in favor of, or against, some consumers?

E) All of the above.

F) None of the above.

2Identify the statement that fails to reinforce the idea that the purchases made by consumers may not be truly voluntary:

A) The more consumers need a product, the less free they are to choose.

B)The consumer may experience anxiety and stress, e.g., when purchasing an automobile.

C) Price-fixing and price-gouging may restrict the consumer's freedom.

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D)There may be marketing practices aimed at vulnerable populations such as children or the elderly.

E) All of the above.

F) None of the above.

3Select the statement that represents a situation where informed consent is not operative:

A) The complexity of a product has been fully explained to a consumer.

B)The customer is not clear about the calculation of the interest rate on a leased product transaction.

C)The extended warranty conditions on a product have been fully disclosed to a consumer.

D)Warning labels on a product have pointed out any potential hazards associated with operating it.

E) All of the above.

F) None of the above.

4Choose the statement that does not challenge the assumptions commonly found in economic textbooks that customers are benefited, almost by definition, whenever their preferences are satisfied in the market:

A) Impulse buying cannot be justified by appeal to consumer interests.

B)The exchange is prima facie ethically legitimate because it assumes that the individuals involved in the transaction act as free, autonomous agents capable of pursuing their own ends.

C)The ever-increasing number of bankruptcies suggests that consumers cannot purchase happiness.

D)Empirical studies provide evidence that greater consumption can lead to unhappiness.

5Select the question that is most likely never relevant to the examination of business' responsibility for its products:

A) What caused an event to happen?

B) Who is to blame for any harms caused, who is liable?

C) What was the agent's motive?

D)Who was responsible for "caring for" a situation, accountable without any suggestion of culpability, fault, or blame?

6The strict products liability standard requires a manufacturer to compensate injured consumers:

A)Only if it can be shown that the manufacturer was at fault in causing or failing to prevent a harm.

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B)Even if the manufacturer was not at fault, even if there was nothing the manufacturer could have done to prevent the harm.

C)Only if the manufacturer used fraud or coercion at the time the contract for the product was agreed to by the consumer.

D)Only if the product's features were described in a deceptive manner in advertising copy.

7Select the statement that doesn't challenge the claim that producers should not be held strictly liable for harms not caused by their negligence:

A) Strict liability adds significant hidden costs to every consumer product.

B)Strict liability places domestic producers at a competitive disadvantage with foreign businesses.

C)If it is unfair to penalize businesses for harms they couldn't prevent, it is equally unfair to penalize consumers for harms they could not prevent.

D)Strict liability discourages product innovation and encourages frivolous and expensive lawsuits.

8Identify the statements that George Brenkert claims represent justifications that juries use to hold manufacturers strictly liable but that are not fully convincing:

A)The consumer who is injured by a product is unfairly disadvantaged in the economic competition and is denied an equal opportunity to compete in the marketplace.

B)Manufacturers are best able to pay for the damages caused by their products.

C)Compensation returns the parties to equal standing and the economic competition can continue as a result.

D) Strict liability creates an added incentive for producing safe products.

E) Answers A and C are correct.

F) Answers B and D are correct.

9It is alleged that markets fail, in some situations, to insure a fair price and thereby limit consumers' freedom. Which statement does not support that allegation?

A)Sellers extract extraordinarily high prices in situations where consumers have few options for obtaining a needed product.

B)From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers from low prices with the benefits to sellers of high prices is the only ethical pricing issue.

C) Monopolistic pricing limits the variety of products available to consumers.

D)The more uniformity of prices one finds within an industry, the less likely it is that competition exists.

10Select the statement that is at odds with the idea that pricing strategies may be unfair:

A)Large stores in competition with smaller stores can absorb losses from

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undercutting the smaller stores on price, an option not available to the smaller ones.

B)Distribution systems are established that reward large retailers with lower costs per unit than the cost per unit smaller stores must carry. As a result, the smaller ones may be driven from the market.

C)A competitive market should drive out uncompetitive firms by driving prices down.

D)Government subsidies of one industry may keep alternative industries from competing on price

Manipulation of a person, considered as a process of subtle direction or management, does not entail total control of that person.

A) TRUE

B) FALSE

2It is impossible to manipulate someone without deceiving them.

A) TRUE

B) FALSE

3Even if most manipulation is done to further the manipulator's own ends at the expense of the person being manipulated, utilitarians would not generally be inclined to think that such manipulation necessarily lessens overall happiness.

A) TRUE

B) FALSE

4Ethical wrong is done either by intending to deceive consumers in order to manipulate their buying behavior, treating them as a mere means to one's own ends (the Kantian approach) or by the harmful consequences for consumers, competitors and overall market efficiency (the utilitarian approach) but not by both.

A) TRUE

B) FALSE

5Any effort by the Federal Trade Commission (FTC) to evaluate expected deceptive marketing

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practices would be seriously flawed because it would mean punishing business on the basis of what the FTC thinks might happen rather than on what actually does happen.

A) TRUE

B) FALSE

6The dependence effect is based on John Kenneth Galbraith's claim that consumer demand depends on what producers have to sell. In effect, advertising, by creating wants, manipulates consumers, violates their autonomy.

A) TRUE

B) FALSE

7Robert Arrington argues that marketing influences us by appealing to pre-existing and independent desires, and since marketing does not prevent us from renouncing those desires, and as long as we don't renounce them, they must still be considered autonomous.

A) TRUE

B) FALSE

8Both Gerald Dworkin and Roger Crisp would argue that critical reflection on a desire is not necessary for that desire to be autonomous.

A) TRUE

B) FALSE

9Even if marketing practices are effective, even if marketing can and does influence consumer choice, there is no reason to believe that marketing has any ethical responsibility for the consequences of choices made by consumers who are vulnerable to products that may harm their health.

A) TRUE

B) FALSE

10Sales, unlike marketing that is directed to general populations, are directed to individuals, and, as a result, any salesperson who fails to stop a sales pitch when he or she suspects that a customer's decision-making is not autonomous, is acting unethically.

A) TRUE

B) FALSE

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Identify the statement that provides a reason why manipulation of consumers is not relevant to marketing ethics:

A)

Knowing consumers' psychological profiles through marketing research, their motivations, interests, desires, beliefs, anxieties and fears facilitates manipulation of their behavior.

B)

Some marketing practices target populations that are particularly susceptible to manipulation and deception.

C)One need not necessarily deceive a person in order to manipulate him or her.

D)

Manipulation doesn't necessarily entail total control over a person; it may simply be a process of subtle direction or management.

E)All of the above.

F)None of the above.

2Select the practice that is not a form of consumer manipulation:

A)Cigarette advertising aimed at children.

B)

Ads aimed at elderly population for such goods as medicare supplementary insurance, casinos and gambling, nursing homes, and funeral services.

C)

Researching the criteria that a typical buyer uses to select a particular make and model of automobile.

D)

Selling an extended automobile warranty or theft protection products to a customer who is anxious about the whole process of buying an automobile.

3What statement suggests that the Johnson and Johnson Tylenol ad stating that "last year hospitals dispensed 1times as much Tylenol as the next four brands combined" was suspiciously deceptive?

A)It was a simple statement of a valid claim about the product.

B)

It was an effort to call attention to the practice of selling the drug to hospitals at a deep discount.

C)

Johnson and Johnson wanted consumers to think that the medical profession and hospitals believed it was the most effective acetaminophen treatment on the market.

D)

Johnson and Johnson wanted to show its commitment to lowering medical costs to consumers.

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4Identify the statement that would not support the idea that determining precise standards for what constitutes deception and how best to regulate it is problematical:

A)

The primary ethical wrong is in the intent to deceive, to intend to use someone's buying behavior for one's own ends. To prevent this wrong from occurring, the Federal Trade Commission (FTC) would have to punish on the basis of what it thinks a marketing practice will do to consumers rather that what it actually does to them.

B)

It is enough to prevent beforehand harms that deceptive practices might do rather than regulate them after the harms have been done.

C)

Regulation might be too strong because it may well turn out that consumers are deceived by relatively trivial marketing practices.

D)

Regulation might be too weak if it places the burden on consumers to prove the deception.

5Select the statement that correctly describes the dependence effect derived from John Kenneth Galbraith's ideas on consumer affluence:

A)

Consumers depend on the free market to learn about the products they may need and want.

B)

Supply follows and depends on demand; consumers are only getting what they want.

C)

Consumer demand depends on what producers have to sell. Demand is a function of supply. Advertising creates wants.

D)

Owners of productive capital depend on giving consumers what they want; otherwise they would lose their investment.

6If consumers are being manipulated by advertising, what are some key ethical implications?

A)

Individual autonomy, the central element of Kantian respect for persons, would be violated by the creation of wants.

B)

If consumers pursue trivial and contrived products, market exchanges only appear to increase overall satisfaction.

C)

Consumer autonomy is violated by advertising's ability to create nonautonomus desires.

D)The economy of the affluent society is contrived and distorted.

E)All of the above.

F)None of the above.

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7Identify the statement that does not challenge Robert Arrington's argument that because marketing doesn't prevent us from renouncing our pre-existing and independent choices, our desires for them must be considered autonomous:

A)

Gerald Dworkin's point that if an individual does not or cannot rationally reflect on a first-order desire (one he or she just happens to have at any time), then the fact that he or she doesn't renounce it does not prove conclusively that it is an autonomous desire.

B)

Dworkin's further claim that autonomy is a second-order capacity of persons to reflect critically on first order preferences and the capacity to accept or change them in the light of higher order preferences and values.

C)

Roger Crisp's claim that we need to know why a first-order desire is accepted, and if not renounced, if it is indeed independent from, say, advertising.

D)

Even if some consumer choices are not autonomous, nothing in Dworkin's or Crisp's analysis shows that advertising is responsible for violating autonomy, only that some consumers do not act in a fully self-conscious way.

8Select the statements reflecting the general sense of vulnerability that is relevant to target marketing:

A)

A person is vulnerable as a consumer because he or she is unable in some way to participate as a fully informed and voluntary participant in the market exchange.

B)

A person is vulnerable because he or she is the typical customer for a particular product.

C)

A person is vulnerable because he or she is susceptible to some physical, psychological or financial harm other than the financial harm from an unsatisfactory market exchange.

D)

A person may be seen as vulnerable because he or she belongs to some ethnic group, or is poor, or is a resident of a particular neighborhood.

E)Answers A and B are correct.

F)Answers A and C are correct.

9Which of the following examples are ways in which persons are vulnerable as consumers because they are vulnerable in some more general sense?

A)

Elderly persons vulnerable to injuries and illnesses might be compelled to make consumer choices based on fear or guilt.

B)

A grieving family member might make choices for funeral services based on guilt or sorrow.

C)

An inner-city resident who is poor, uneducated, and chronically unemployed is unlikely to weigh the consequences of using drugs or alcohol.

D)

A person afflicted with a medical condition or disease might feel fear associated with the condition that can lead to uninformed consumer choices.

E)All of the above.

None of the above.

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F)

10Select the statements that challenge the idea that marketers cannot be held liable for decisions that any individual makes:

A)

Marketing addresses populations, not, as sales do, individuals, so no direct causal connection can be demonstrated between a marketing campaign and an individual's choices to buy a product.

B)

If marketing is ineffective in influencing consumer choice, the marketers selling their services to businesses are committing fraud.

C)Any individual may choose not to buy a marketed product.

D)

If marketing is effective and does influence consumer choices, it cannot disavow responsibility for the consequences of those choices.

E)Answers B and C are correct.

F)Answers B and D are correct

Everyone agrees that there is only one valid approach to reconciling the wide range of values appealed to in defense of various environmental policy prescriptions: forget the need to attain a unity of value rationales and focus on finding agreement on specific policy recommendations.

A)TRUE

B)FALSE

2Non-ecocentric approaches to the environment assume that only individual beings can be the holders of ethical value. Ecocentrists, in contrast, extend that concept to ecological wholes, like ecosystems, populations, and species.

A)TRUE

B)FALSE

3Using natural objects as resources is, per se, of itself, an important ethical

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issue from the ecocentric perspective.

A)TRUE

B)FALSE

4In one area of emerging environmental policy consensus, the real ethical issue in the debate over the use of nonhuman natural objects as resources is not that we use them, but which objects we use, how, what for and the rate at which we use them.

A)TRUE

B)FALSE

5According to William Baxter, the optimal level of pollution can be achieved through competitive markets because society, through the activities of individuals, will be willing to pay for pollution reduction as long as the perceived benefits outweigh the costs.

A)TRUE

B)FALSE

6Market solutions to environmental pollution fallaciously presume that what is good and rational for a collection of individuals is necessarily good and rational for a society. As a result, important ethical and policy questions can be missed and that can lead to serious environmental harm. Under the market model, for example, restricting sales of sports utility vehicles (SUV's) and treating them as trucks with higher gas mileage standards or increasing taxes on gasoline would never be considered.

A)TRUE

B)FALSE

7Although beliefs are objective and subject to rational evaluation, there is no reason not to judge the validity of a person's belief by a person's willingness

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to pay for it. Therefore, economic analysis legitimately includes beliefs in addressing environmental policy.

A)TRUE

B)FALSE

8Norman Bowie believes that in addition to the moral minimum requirement of obeying the law, causing no avoidable harm to humans, and refraining from unduly influencing environmental legislation, it is conceivable that business may still have other special environmental responsibilities and obligations.

A)TRUE

B)FALSE

9If productive activities used in the classical model of economics continue, the entire model will prove unstable because these activities may move resources through the system at a rate that outgrows the productive capacity of the earth or the earth's capacity to absorb their wastes and by-products.

A)TRUE

B)FALSE

10There are no conditions that will allow the biosphere to produce resources and absorb wastes indefinitely.

A)TRUE

B)FALSE

Which environmental issue might fit easily within standard ethical theory and can easily be integrated into the standard model of business' ethical responsibilities?

A)Responsibilities to generations of human beings not yet living.

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B)The moral standing of nonhuman living beings.

C)Anthropocentrical ethics allowing for responsibilities regarding the nonhuman natural world.

D)Nonanthropocentrical ethics claiming that we have direct moral responsibilities to The nonhuman natural world.

2According to the anthropocentric, nonanthropocentric, and various biocentric approaches to environmental issues, which beings would not be holders of ethical value?

A)Individual humans.

B)Whole ecosystems, populations, and species.

C)Individual animals.

D)Individual living beings other than animals

3Identify the activity that ecocentric ethics would not accept as morally legitimate:

A)Using animals as food, pets, or game.

B)Clear-cut forestry, hunting and fishing that threaten endangered species.

C)Selective thinning of forests lands by logging

D)Selective hunting and killing as a means to protect ecosystems from invasion by nonnative species.

4Select the statements that do not express a good reason for preserving biological diversity among both plant and animal species:

A)Lost diversity among crops makes food production more prone to disease and weather- related failures.

B)Plant diversity holds great promise for research into medicine production.

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C)Plant diversity holds great promise for research into food production.

D)Biodiversity contributes to healthier ecosystems.

E)All of the above.

F)None of the above.

5Select the statement challenging the view that from a strictly free market perspective, resources are "infinite":

A)Human ingenuity and incentive has always found substitutes for any shortages.

B)As the supply of any resource decreases, the price increases and provides a strong incentive to supply more or provide a less costly substitute.

C)All resources are fungible, i.e., can be replaced by substitutes.

D)Trading certain environmental goods like rhinoceros horns, tiger claws, elephant tusks, and mahogany on the black market seriously threatens their viability.

6Identify the perspective that, if true, would challenge Mark Sagoff's argument against the use of economic analysis as the dominant tool of environmental policymakers:

A)Economics can only deal with wants and preferences because these are what get expressed in an economic market.

B)Even though wants and beliefs are in different categories, markets can measure the intensity of our wants by our willingness to pay, and that fact, by extension, provides a measurement as well for our beliefs or values.

C)When economics is involved in environmental policy, it treats beliefs as if they are mere wants and thereby seriously distorts the issues.

D)Wants are personal and subjective, while beliefs are subject to rational evaluation. When environmentalists argue for preservation of a forest, or species, or ecology, they are stating convictions about a public good that can be accepted or rejected by others on the basis of reasons, not on who is most willing to pay for it.

7Market analysis as applied to issues of the environment is ineffective

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because:

A)It treats us always as consumers, not as citizens, threatening our political process. It leaves no room for debate, discussion, or dialogue in which to defend our beliefs with reasons.

B)The market ignores the fact that we are "thinkers," not just "wanters," and reduces our beliefs and values to mere matters of personal taste and opinion.

C)As Mark Sagoff points out, environmental goals are views and beliefs that cannot be priced by markets or economic analysis.

D)Our political system leaves room for both personal and public interests.

E)All of the above:

F)None of the above:

8Select the statement that does not challenge the Mark Sagoff-Norman Bowie approach which holds that absent consumer demand or law that establish environmental policy, business has no particular environmental responsibility:

A)This approach underestimates the influence that business can have in establishing the law.

B)The side constraints of law are a highly effective tool for controlling managerial decisions that might affect the environment.

C)Norman Bowie's proposed obligations on the part of business to refrain from using its influence to shape environmental regulation is a praiseworthy proposal but it's unlikely to have any political effect.

D)This approach underestimates the ability of business to influence consumer choice.

9Choose the statement that defenders of the circular flow model which explains the nature of economic transactions in terms of a flow of resources from businesses to households would agree with:

A)The services that resources yield can be provided in many ways by substituting different factors of production and are, therefore, infinite.

B)The possibility that the economy can grow indefinitely to keep up with significant population growth is ignored by this model.

C)If resources are moved through the classical model of a productive system at a rate that outpaces the productive capacity of the earth or the earth's capacity to absorb wastes and by-products of the system, the entire classical model will prove unstable.

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D)Many resources like clean air, drinkable water, fertile soil, and food cannot, under the circular flow model, be replaced by the remaining factors of production.

10Identify the statement that does not meet Natural Capitalism's principles for the redesign of business to meet its environmental responsibilities:

A)To serve the needs of the poorest 75 percent of the world's population, ecoefficient business practices focus on ways of increasing efficiency and, therefore, decreasing resource use by a factor of 5-10.

B)To serve the needs of the poorest 75 percent of the world's population, the standard growth model would increase economic growth by a factor of 5-10.

C)The principle of biomimicry attempts to eliminate by-products once lost as waste and pollution and reintegrate them into the production process or return them as a benign or beneficial product to the biosphere.

D)Models of business as a producer of goods should be replaced with a model of business as a provider of services

Although the Civil Rights act of 1964 required significant changes throughout American society, especially in the workplace and commerce, it was, politically speaking, only mildly controversial.

A)TRUE

B)FALSE

2Discrimination, in itself, does not give rise to ethical problems unless the criteria for making it are unethical or unfair.

A)TRUE

B)FALSE

3Legal access alone is usually sufficient to give a woman or person of color a really fair chance to succeed in a predominantly male or white workplace.

A)TRUE

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B)FALSE

4When an employer seeks to increase the applicant pool for its positions, no white male's rights are violated because no white male has been denied anything to which he had a legitimate ethical claim.

A)TRUE

B)FALSE

5To conclude that the most qualified candidate has a legitimate ethical claim on a job is to treat jobs as the private property of business owners to be distributed as they see fit, not as social goods that should be distributed on grounds of fairness.

A)TRUE

B)FALSE

6One response made to young white males who claim that they did not cause the harm done by past discrimination and, therefore, are being unfairly harmed by being denied equal access is that they are simply being denied something they did not deserve, i.e., an unfair competitive advantage.

A)TRUE

B)FALSE

7One of the major arguments for preferential treatment in hiring is that such policies are a legitimate means for compensating people for harms they have suffered. To fail to compensate continues a practice of undeserved advantages for white males having to compete in an unfairly restricted job pool and undeserved disadvantages for victims of discrimination.

A)TRUE

B)FALSE

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Even though the principle of equality, in its most basic sense, requires us to treat likes alike, ignoring the effects of undeserved and unfair disadvantages is not treating unlikes alike as long as it is done for the sake of some formal principle of equal or identical treatment.

A)TRUE

B)FALSE

9The word "sex" can mean sex as gender or sex as sexuality. Even though the treatment a woman receives in a case of quid pro quo sexual harassment is unequal, it only involves sexuality and, as a result, cannot be a case of gender discrimination as well.

A)TRUE

B)FALSE

10The "reasonable person" standard for judging the severity of workplace sexual harassment may mean what the average person considers reasonable, and that understanding may simply ingrain notions of reasonable behavior fashioned by the male offenders, and may fail to adequately address injustice.

A)TRUE

B)FALSE

Select the statement that emphasizes the startling contrast between gains made by women in professional careers and women in business careers:

A)Women in general hold less than 5 percent of all senior-level positions in major corporations.

B)Between 1973 and 1993, the percentage of women lawyers and judges increased from 5.8 to 22.7 percent.

C)White men comprise 65 percent of managerial positions in industry while women hold 25 percent of them.

D)Forty percent of native-born working women fill positions classified as "administrative support" and "service" while only 16 percent of male worker fill such jobs.

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2Choose the statements that correctly reflect the likely utilitarian view of preferential treatment in hiring:

A) Managerial discretion should be given great latitude in hiring decisions.

B)Hiring decisions should be based on the ability of the candidate to perform the job efficiently and skillfully.

C) Property rights should prevail in hiring decisions.

D)Consequences like the goodwill of long-term employees whose families are given preference in hiring must be considered.

E) Answers A and B are correct.

F) Answers B and D are correct.

3Identify the situation that does not show how disparate treatment can result from what appears to be normal and equal consideration of candidates for a position:

A)Women have lower salary expectations than men. An employer without bias against women might select a qualified woman for a position just to save money.

B)A woman who has been hired at a lower salary than a male colleague because her salary expectations were lower may receive an equal percentage of merit pay over time but applied to a smaller base salary than the male's.

C)Even if this same woman has received equal opportunity for promotions as the male colleague, she may still never close the gap between her salary level and the male's salary level.

D)All of the above.

E) None of the above.

4Choose the action that exemplifies affirmative action, i.e., taking extra steps that move beyond passive nondiscrimination:

A) Advertising in media that appeal to women or minorities.

B) Providing door locks on women's bathrooms and showers but not on men's.

C) Deliberately recruiting qualified women and minority candidates.

D)Providing special support through the human resources office for women or people of color who are hired.

E) All of the above.

F) None of the above.

5Select the preferential treatment policy that is likely to raise the least serious ethical challenge:

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A)Giving preference to otherwise qualified but previously disadvantaged candidates.

B)Identifying members of previously disadvantaged groups in the pool of qualified candidates and giving them preference in the hiring decision.

C)Identifying members of previously disadvantaged groups in the pool of candidates who are less qualified than white males and giving them preference in the hiring decision.

D)Hiring members of disadvantaged groups with only minimal consideration given to qualifications.

6Identify the arguments that have not been used to support or refute the ethical legitimacy of preferential hiring policies:

A) These policies violate the rights of white males.

B)These policies are obligatory means for compensating people for harms they have suffered.

C)Such policies should be rejected because they may create more discrimination as a backlash against gender or racial preferences.

D)Preferential hiring is a means of providing more role models for young women and people of color.

E) All of the above.

F) None of the above.

7Select the statement or situation that would likely not challenge the merit argument that the most qualified candidate for a position has earned or deserves it, and the denial of this desert is unjust:

A)Candidates for a job do not necessarily have a legitimate expectation that hiring decisions will always be based solely on qualifications.

B)The son or daughter of a high-level executive in a publicly traded company receives preferential hiring treatment.

C) The candidate from one's own alma mater receives preferential hiring treatment.

D)The public advertising for a position expressly states its qualifications.

8Choose the statement that does not support the claim that justice requires preferential hiring and promotion to compensate people for the harms they have suffered:

A)Preferential treatment equalizes the situation of unfair discrimination after the fact and returns it to the point that it would have been had discrimination not occurred.

B)Young white males will lose their undeserved competitive advantage if society simply adopts equal opportunity policies.

C)Compensation is not being paid by young white males but by private business or society. These white males are only being denied the competitive advantage they previously enjoyed-something they did not deserve.

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D)The only means to compensate for overall discrimination (e.g., in pay treatment) is to grant individual women preferential consideration in hiring and promotion.

9Select the statements that correctly reflect the Equal Employment Opportunity Commission's guidelines defining sexual harassment:

A)Submission to unwelcome sexual advances, requests for sexual favors and other verbal or physical content of a sexual nature is made either explicitly or implicitly a term or condition of an individual's employment.

B)Submission or rejection of such conduct by an individual is used as a basis for employment decisions affecting that individual.

C)Such conduct has the effect of unreasonably interfering with an individual's work performance.

D)Such conduct creates an intimidating, hostile, or offensive work environment for an individual

E) All of the above.

F) None of the above.

10Identify the reason for not believing that it would be correct to shift from the reasonable "man" or reasonable "person" standard to the reasonable "women" standard for identifying conduct that unreasonably interferes with work:

A)The shift from reasonable man to reasonable "person" should alert us to the possibility that "person" is simply a disguised version of "man."

B)This shift can reinforce the unacceptable sexual and paternalistic stereotype of women as more sensitive, fragile, and delicate than men and that, therefore, women need extra protection from the rough and tough workplace.

C)Unless, as one judge has ruled, the outlook of the reasonable women is adopted, defendants and courts are permitted to sustain ingrained notions of reasonable behavior as fashioned by male offenders.

D)The reasonable "person" standard can have the effect of simply maintaining the status quo in a workplace that remains very male oriented

The fact that political and economic elites in other countries tolerate corrupt and unethical conduct and are the very ones to benefit from that conduct in certain cases does not provide evidence to support the

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claim that what we take as unethical is ethically acceptable there.

A)TRUE

B)FALSE

2The maximalist approach to the question of whether there are any values that can be reasonably applied across cultures holds that as long as corporations cause no harm, they have fulfilled their ethical responsibilities by meeting their economic goal of producing goods, services, jobs, and profits for consumers, employees and shareholders.

A)TRUE

B)FALSE

3One major challenge to the minimalist approach which holds that business is free to pursue its economic interests as long as certain minimal moral rights are not violated in the process is that it does not seem to explain why the responsibilities correlated with these rights fall to multinational business rather than to government.

A)TRUE

B)FALSE

4Decisions made within businesses only rarely can have as great an influence on international affairs as those made within government, so they are not one of the central problems of worldwide economic integration.

A)TRUE

B)FALSE

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Defenders of globalization argue that international economic integration is an essential step in worldwide economic growth which alone can adequately address worldwide poverty and deprivation.

A)TRUE

B)FALSE

6The argument that the free, competitive international market will provide a more efficient and optimal distribution of economic goods and services is utilitarian in that the recipient of the market's benefits is the collective "greatest number of people" while allowing that the market may cause harm to actual individuals and their families in the process.

A)TRUE

B)FALSE

7There is no strong worldwide political consensus in favor of local environmental, labor, and consumer regulation, so there is no opposition to free trade agreement and the WTO that will be major engines for deregulation.

A)TRUE

B)FALSE

8Defenders of the "Golden Straitjacket" policies argue that poor nations are free to reject such policies as, among others, making the private sector the engine of economic growth, eliminating and lowering tariffs on imported goods, getting rid of quotas and domestic monopolies, opening industries, stock, and bond markets to direct foreign ownership and investment, but that the poor nations cannot reasonably expect economic prosperity to follow from alternative policies.

A)TRUE

B)FALSE

9Defenders of institution like the WTO, World Bank, and the IMF claim that because these institutions exist and have authority only because nations have agreed to have them exist with authority, have freely entered into agreements that created and control them, their critics can

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be accused of supporting undemocratic policies.

A)TRUE

B)FALSE

10Even though much of the wealth of the industrialized nations relies on the resources and markets in the developing world, that is not a reason to believe that taking steps to relieve poverty in these countries is an ethical duty of the citizens and business of the industrialized world rather than a simple act of charity.

A)TRUE

B)FALSE

Identify the practice which is not a criticism of the World Trade Organization (WTO), the International Monetary Fund (IMF), the World Bank, and the G8 that are accused of helping only the rich and harming the poor:

A)

These institutions demand that developing economies remove tariffs in their own economies while tolerating protectionist tariffs for industries in the developed economies.

B)

Loss of tariffs within poor countries makes them vulnerable to the economic power of industrialized countries and international corporations.

C)

In fiscal year 2001, the World Bank lent more than $17 billion to developing countries as part of an effort to reduce poverty in developing countries.

D)

Continued subsidies within developed countries that protect domestic industries prevent poorer countries from doing business with wealthier populations.

2Select the statement this is not an objection to insisting that diversity of values in cultures entails ethical relativism:

A)

It is a mistake to conclude too quickly that because cultures are diverse, they necessarily hold diverse ethical values.

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B)

Given different circumstances, conduct that might be condemned or excused in one context might be excused or condemned in another. But, excusing unethical behavior is not the same as justifying it.

C)

Even in cases where a local culture holds values different from one's own, a person's own integrity would require that one's personal values not be abandoned.

D)

Attempts to justify or excuse otherwise unethical conduct by appeals to local values and customs that are advanced only to contribute to the bottom line are simply another instance where ethical responsibilities restrict self-interest. This fact alone is not a good reason to abandon ethics in the face of a disagreement of values.

E)All of the above.

F)None of the above.

3Which of the following rights might clearly be the sole responsibility of government rather than of international business?

A)The right to minimal education.

B)The right to nondiscriminatory treatment.

C)The right to physical security.

D)The right to a fair trial.

E)Answers #1 and #4 are both correct.

F)Answers #3 and #4 are both correct.

4Identify the ways in which the process of international economic integration has increasingly become more common and accelerated in the last decade or two:

A)

International trade agreements such as the General Agreement on Tariffs (GATT) and the North American Free Trade Agreement (NAFTA) have been established.

B)

The Euro was adopted beginning 2002 within the European Union, establishing a common currency.

C)

International loans from the World Bank have supported major development projects throughout the world.

D)

Monetary policies established by the IMF have made it increasingly easy for capital to flow between countries.

E)All of the above.

F)None of the above.

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5Select the reasoning that challenges support for the ethical case for free trade and international economic cooperation:

A)

The pursuit of profit within social and economic arrangements which secure free and open competition will allocate resources to their most highly valued uses and distribute those resources in ways that will produce the greatest good for the greatest number of people.

B)

International competition for labor, jobs, goods and services, natural resources, and capital will, over time, increase the overall well-being of everyone.

C)

Economic integration is a major impediment to conflict: the more countries cooperate economically, the less likely they will want to go to war.

D)

Even though newly employed workers in the poorer countries who are forced to take jobs that are at a subsistence level in sweatshop conditions are better off in these jobs than they would be without them, the choice to work under such conditions is little more than extortion and exploitation by business.

6Choose the statement that does not provide a reasonable way for international businesses to treat their employees in foreign countries on a comparable level with their treatment of employees in their home countries:

A)

Pay wages and benefits that are somewhere between those paid in the home country and the minimal wages that will get people to work in the host country.

B)Pay wages and benefits that are very similar in the home and host countries.

C)

If it takes two people earning minimum wages to support a family of four just above the poverty level in the United States, a minimum wage in the host country would be similarly determined.

D)All of the above.

E)None of the above.

7Choose the statements that do not support the idea that international businesses should rely on local firms and independent contractors to supply workers in host countries:

A)

To benefit from less-costly local labor, business should hire workers directly and take full and direct responsibility for how they are treated.

B)

Hiring individuals as contractors on a per-item basis avoids having to pay fair wages and benefits.

C)

As independent contractors, these individuals are responsible for the terms and conditions of their own employment.

D)

Local firms are better equipped to recruit competent workers who will be satisfied with minimum wages.

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8Here are some ethical reasons for regulating economic activity. Determine which ones are not likely to be judged a barrier to free trade:

A)Protecting the environment.

B)Protecting workers and consumers.

C)Protecting family farms.

D)Protecting domestic industries.

E)All of the above.

F)None of the above.

9Which statement is not a policy included in Thomas Friedman's "Golden Straitjacket," the policies that a country should follow for itself if it "opts for prosperity"?

A)Getting rid of quotas and domestic monopolies.

B)Privatizing state-owned industries and utilities.

C)

Opening industries, stock, and bond markets to direct foreign ownership and investment.

D)Restricting imports.

E)All of the above.

F)All of the above.

10Identify the statement that challenges the criticism that global economic integration threatens deeply held noneconomic values:

A)

The WTO, World Bank, and IMF are themselves undemocratic bureaucracies that threaten the political values and self-determination in poor countries.

B)

Private multinational corporations are replacing legitimate governments as the true international decision makers.

C)

The policies of the "Golden Straitjacket" are simply rational requirements for a nation that chooses prosperity over poverty. Financial and economic norms are analogous to scientific laws discovered by social scientists.

D)

Global market capitalism fueled by multinational corporations seeks to expand worldwide markets for their products and creates a cultural homogenization which threatens local cultures and traditions

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