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or False

Top of Form
True or False no Why Study Ethics 1 347041 1

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1
According 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.

TRUE
A)

FALSE
B)
2 2

2
The 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.

TRUE
A)

FALSE
B)
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3
The 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.

TRUE
A)

FALSE
B)
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4
Because 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.
TRUE
A)

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

TRUE
A)

FALSE
B)
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6
If 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.

TRUE
A)

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

TRUE
A)

FALSE
B)
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8
The 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.
TRUE
A)

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

TRUE
A)

FALSE
B)
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1
Philosophical ethics distinguishes what people do value from what they should value.
0
TRUE
A)

FALSE
B)
Bottom of Form
Which
statement
correctly
reflects the
free market
view of
business
social
responsibility?
In addition to making a profit, businesses are just
as responsible for seeing to the well-being of their
A) employees and the communities in which they
operate
No one other than the managers and owners of a
business may claim to have any stake in the
B) business decisions managers make.
In the process of providing goods and services to
customer who need and want them and maximizing
C) profits for its shareowners, a business fulfills its
social responsibility
A business is responsible for maximizing profits for
its shareowners, but, in special circumstances, may
D) have to sacrifice profits in the interest of the
community whose citizens depend on it for
employment.
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2
Which of the following statements is decisive in determining whether or not to study business
ethics?
Business managers don’t need to study ethics in
order to know how to treat employees,
A) shareowners, and customers.
Business and ethics simply don’t mix. In the final
analysis, self-interest represented by profit
B) overrides the interests of employees, customers,
and communities. Opinion and sentiment get in the
way of efficient business decision-making.
Ethical concerns are as unavoidable in business as
are concerns of marketing, accounting, finance, and
C) human resources. Formal study of business ethics
helps address these concerns so that decisions of
right and wrong may be made deliberately. and
conscientiously
The answers to ethical questions are clear-cut
enough; all business people already know right
D) from wrong.
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3
Which statement correctly describes the relationship between philosophical ethics and ethos?
Individuals who obey the conventions, mores, and
rules of their cultures are already acting ethically.
A) No further philosophical reflection is required.
Philosophical ethics distinguishes what people do
B) value from what they should value.
What people do value and should value are, for all
C) practical purposes, the same.
Philosophical ethics is too abstract to be useful in
everyday life situations. Following the mores and
D) customs of one’s culture is a more dependable way
to make moral decisions.
Which
statement
does not
reflect the
idea of ethical
relativism:
All opinions are equal; no one can say what is
A) ethically right or wrong.
One's culture, society, or personal feelings are the
only criteria for deciding what is ethically right or
B) wrong.
Determining what is ethically right or wrong is a
process of arguing from an appeal to values and
C) principles that justify and legitimize an opinion.
Philosophical ethics is simply a process of clarifying
D) values, not a process of justifying them.
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2
Which of the following intellectual disciplines provides absolute proof of its conclusions?
The social, biological, meteorological, and medical
A) sciences.
Ethical judgments based on well-reasoned arguments
B) from sound moral principles.
The applied sides of engineering, chemistry, and
C) physics.

All of the above.


D)

None of the above.


E)
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3
Which statement is a correct view of psychological egoism?
While our own interests are important, they make
sometimes have to give way to the interests of
A) others.
Psychological egoism makes claims about how people
B) should act.
If psychological egoism is true, we should abandon
C) ethics.
Psychological egoism does not claim to provide an
D) accurate descriptive account of human behavior.
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4
Identify the statement that is consistent with utilitarian ethical theory:
Adhering to a set of principles may well forbid an act
that would otherwise provide overall net good
A) consequences.
No act is ever morally right or wrong in all cases, in
every situation. It will all depend on the act's
B) consequences.
Some actions like murder, theft, rape, and lying are
wrong of their very nature, the kind of acts they are.
C) No amount of net good consequences could ever
justify them.
The end never justifies the means.
D)
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5
Which statements are legitimate challenges to utilitarian ethical theory?

The end may justify the means.


A)
There is no consensus among utilitarians on how to
B) measure and determine the overall good.
It is difficult to know how to consider the
consequences for all the parties that will be affected
C) by an act.
It is difficult for the utilitarian to find a balance
between individual freedom and the overall good.
D) The more utilitarians emphasize freedom the more
likely they hold more relativistic accounts of the
good.

All of the above.


E)

None of the above.


F)
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6
Which of the following reasons accounts for utilitarianism's dominance among policy makers and
administrators?
It seems obvious that policy questions should be
A) judged by results and consequences.
Policy experts at all levels are focused on results and
B) getting things done.
Efficiency is simply another word for maximizing
C) happiness.
Policy experts focus on the collective or aggregate
D) good.

All of the above.


E)

None of the above.


F)
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7
Which proposition correctly describes the concept of a right?
Rights protect a person's wants.
A)
There is really no distinction between a person's
B) wants and interests. Rights protect both.

Rights protect a person's interests.


C)
My rights never correspond to your duties and your
D) duties never correspond to my rights.
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8
Which statement is not true of deontological ethics?
Obligations, responsibilities, and commitments
A) determine the correct approach to ethics.
While we are committed to the dignity and well-being
of individuals, an individual may have to sacrifice his
B) or her rights in order to generate a net increase in
the collective good.
Certain acts are wrong and should not be performed,
regardless of the overall happiness they may
C) produce.

The end does not justify the means.


D)
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9
Which statement is not true of Kant's categorical imperative:
We should act only on maxims that can be
A) universally accepted and acted upon.
Universalization of maxims prohibits us from giving
our personal point of view privileged status over the
B) points of view of others.
Our fundamental ethical duty is to treat other human
beings as autonomous persons who may choose their
C) own ends and purposes, not simply as means for the
ends of others.
The inability to universalize the maxim of an act may
sometimes be ignored if the act in question will
D) produce the greatest good for the greatest number.
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10
According
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.

TRUE
A)

FALSE
B)
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2
Mathematics, 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.

TRUE
A)

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

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

TRUE
A)

FALSE
B)
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5
Because 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.

TRUE
A)

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

TRUE
A)

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

TRUE
A)

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

TRUE
A)

FALSE
B)
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9
One 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.

TRUE
A)

FALSE
B)
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1
The theory of virtue ethics focuses on a full and detailed description of those character
0 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.

TRUE
A)

FALSE
B)

Which statements are characteristic of virtue ethics?


Our character traits are easily modified, almost on a
A) day-to-day basis if we so choose.
Like Kantian ethical theory, virtue ethics requires
B) that we disregard personal emotions and feelings.
Virtue ethics is about describing people as good or
C) bad.
Even if a person is caring, empathetic, charitable and
sympathetic, the challenge of egoism is still a factor
D) in his or her decision-making.

All of the above.


E)

None of the above


F)
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.

TRUE
A)

FALSE
B)
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2
To 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.

TRUE
A)

FALSE
B)
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3
If 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.

TRUE
A)

FALSE
B)
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4
There 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.

TRUE
A)

FALSE
B)
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5
According 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.

TRUE
A)

FALSE
B)
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6
Bowie'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.

TRUE
A)

FALSE
B)
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7
The 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.

TRUE
A)
FALSE
B)
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8
Since 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.

TRUE
A)

FALSE
B)
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9
The 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.

TRUE
A)

FALSE
B)
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10
A 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.

TRUE
A)

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

The moral minimum model.


A)

The classical model.


B)

The social contract theory.


C)
The stakeholder theory.
D)
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2
The ethical roots of the classical model of corporate social responsibility are found in which
statement:
The idea that the interests of stakeholders are as
important as the interests of a corporation's
A) stockholders.
The free market theory which holds that managers are
ethically obliged to make as much money as possible
B) for their stockholders because to do otherwise would
undermine the very foundations of our free society.

The ethical imperative to cause no harm.


C)

The ethical imperative to prevent harm.


D)
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3
Which of the following reasons might a free market economic theorist use to justify the hostile
takeover of a company?
The takeover target company's stock is undervalued.
That is evidence that the resources are being
A) inefficiently used.
If current management is not maximizing profits, it is
violating the utilitarian imperative to maximize the
B) overall good.
The organization seeking to take over the target
company will maximize profits for the stockholders and
C) will be serving the public's interests because it is only
by satisfying consumer (public) demand that a
business can make profits.
If the takeover target's managers are using their
stockholders' money to serve interests other than
D) those of the stockholders, they are stealing from them.

All of the above.


E)

None of the above.


F)
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4
Which 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?
The costs of pollution, groundwater contamination and
depletion, soil erosion and nuclear waste disposal are
A) borne by parties external to the economic exchange
between buyer and seller.
Where there is no mechanism for pricing, for setting a
value on, public goods, there is no guarantee that the
B) markets result in the optimal satisfaction of the public
interest in regards to public goods.
Situations in which externalities have been internalized
result in an equilibrium in the exchange price between
C) true costs and benefits.
The pursuit of individual self-interest results in a worse
outcome than would have occurred had the behavior of
D) the parties involved in the economic exchange been
coordinated through cooperation or regulation rather
than mere competition.
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5
Which 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?
Markets can work to prevent harm only by first-hand
experience with harms that have to occur before they
A) can be remedied.
It is claimed that once market failures are adequately
addressed by the government, business just needs to
B) obey the law that addressed them. Business, however,
has the ability to inappropriately influence government
policy and the law.
Business has the ability to influence consumers' desires
C) by helping shape those desires through advertising.
A more precise formulation of a utilitarian-based
principle would be to maximize profit whenever doing
D) 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.
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6
According 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?
Property rights are restricted when they conflict with
the basic rules of society as embodied in law and
A) custom.
The connection between ownership and control that
exists for personal property does not legally exist for
B) corporate property.
Investors buy their stocks with the hope of maximizing
C) return on their investment.
Stockholders in publicly traded corporations are better
D) understood as investors rather than owners.
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7
Which statement is true of Bowie's Kantian approach to business ethics?
People have a duty both to not cause harm and to
A) prevent harm.
Both causing no harm and preventing harm override
B) other ethical considerations.
While it is ethically good for managers to prevent harm
or do some good, their duty to stockholders overrides
C) these concerns.
A narrow interpretation of Bowie's "cause no harm"
imperative makes the duties faced by management
D) under the neo-classical model significantly different
from the classical model.
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8
Select the reasons, historically speaking, why the modern corporation was established as a legal
entity:

Social benefits flow from corporate institutions.


A)
Corporations provide an efficient means for raising
large amounts of capital needed to produce and
B) distribute socially desired goods and services.
Corporations distribute risks widely over large
C) populations, minimizing the risk to any one individual.
Corporations provide individuals with efficient means
D) for the creation of wealth and for supplying jobs.

All of the above.


E)

None of the above.


F)
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9
Which statement does not challenge the notion of a hypothetical social contract between society
and corporations?
If the social contract presupposes an amoral beginning,
it seems to offer few guarantees that certain
A) fundamental ethical rights will be protected under the
contract.
Micro-social contracts can be developed within
particular local communities that establish the specific
B) 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.
It is difficult to specify exactly what responsibilities will
C) be drawn from this hypothetical contract.
If the theory already begins with certain fundamental
rights and responsibilities, then the social contract may
D) be irrelevant to providing an ethical justification for
business' responsibilities.
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10
Which statement represents a challenge to Evan's and Freedman's defense of the stockholder
theory against the classical model of corporate social responsibility?
The law now recognizes a wide range of managerial
obligations to such stakeholders as consumers,
A) employees, competitors, the environment, the
disabled.
Courts and legislatures have recognized that the rights
and interests of various constituencies affected by
B) corporate decisions limit managers' fiduciary
responsibility.
Stakeholder theory cannot answer the question as to
how, exactly, a manager should go about balancing the
C) diverse and competing claims of all parties.
There is no guarantee that when managers produce
profits they will serve the interests of either
D) 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.

TRUE
A)

FALSE
B)
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2
The 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.

TRUE
A)

FALSE
B)
3 2
3
A job might be described simply as work in which self-identity and the activity are independent
of each other.

TRUE
A)

FALSE
B)
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4
It 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.

TRUE
A)

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

TRUE
A)

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

TRUE
A)

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

TRUE
A)

FALSE
B)
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8
Karl 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.

TRUE
A)

FALSE
B)
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9
Both 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.

TRUE
A)

FALSE
B)
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10
The 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.

TRUE
A)

FALSE
B)
Which
statement is
not
characteristic
of the
industrial
model of
work?
Employees receive steady employment, secure wages and
A) benefits, and opportunities to advance within the firm.
Jobs are temporary, often part time, often filled by
B) entrepreneurial and freelance workers.
Employees receive the benefits of increased productivity
C) created by a stable and competent work force.
Work activities are highly structured and routinized.
D)
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2
Which words have never been used to describe work?

Exalting.
A)

Fulfilling.
B)

Degrading and tedious.


C)

Troublesome.
D)

All of the above.


E)

None of the above.


F)
3 4

3
Select the statement that does not represent one of the common aspects of the contemporary
work scene:
Workers have significant choices and alternatives open to
A) them in the workplace.
More jobs today are temporary, part-time, or
B) subcontracted out to third parties.
Most workers will likely have no more than one or two
C) jobs in a lifetime.
The social values of work such as camaraderie and social
D) status are lost to part-time and temporary workers.
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4
The classical interpretation of work is best described by:

Humans are intellectual, yet work is physical.


A)

For cultured and civilized people, work is undignified.


B)

Humans are free beings; work is a necessity.


C)
Work diminishes human nature and human potential.
D)

All of the above.


E)

None of the above.


F)
5 4

5
Which of these statements does not describe the hedonistic interpretation of work?
Work is the price we pay to get the necessities of life and
A) other things that make life pleasurable.

Happiness is the enjoyment of cultural activities.


B)

There is no specific content for human happiness.


C)
Individuals are allowed to choose whatever ends they
D) desire.
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6
Which 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:
Not every job contributes to the development of human
A) potential.
The proper kind of workplace contributes to human
B) development.
Jobs do not have the potential for influencing and shaping
C) individuals.

Individuals exercise control over jobs.


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

Alienation is the result of low wages.


A)
Alienation is the result of work that prevents the full
B) development of human potential.
Alienation means the separation and distinction of one
C) social class from another.
The capitalistic system does not inevitably mean a life of
D) alienation for workers.
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8
Select the statement that fails to describe the human potentials that work can fulfill:
Work provides the occasion for developing talents and
A) exercising creativity.
Through work, humans create their own society and
B) culture and thereby their own identities.

Work expresses our nature as social beings.


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

All of the above.


E)

None of the above.


F)
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9
Indicate the statement that is not consistent with Bowie's liberal theory of work:
One of the moral obligations of a firm is to provide
A) meaningful work.
It is a simple enough task to find a justification for any
B) objective, normative definition of meaningful work.
Meaningful work defined as nothing more than what
employees say it is, is a subjective and individualistic
C) definition of work.
The more people are compelled to work, the greater the
responsibility to make sure that workplace conditions are
D) as humane as possible.
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10
How might a liberal have to respond to the suggestion that some workers might prefer to work
at highly routinized, unchallenging, and boring jobs?

Employers have no choice but to eliminate these jobs.


A)

Employers have no obligation to eliminate these jobs.


B)
These jobs do not necessarily suppress the human
C) faculties of rational and autonomous choice.
While it may be true, on the one hand, that as long as no
one is forcing employees to do these jobs, employers
D) 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.

TRUE
A)

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

TRUE
A)

FALSE
B)
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3
The 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.

TRUE
A)

FALSE
B)
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4
The 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.
TRUE
A)

FALSE
B)
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5
According 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.

TRUE
A)

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

TRUE
A)

FALSE
B)
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7
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.

TRUE
A)

FALSE
B)
8 2

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

TRUE
A)

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

TRUE
A)

FALSE
B)
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10
Information 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.

TRUE
A)

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

Wages and benefits.


A)

Wages set at less than the legal minimum wage.


B)

Working conditions.
C)

Agreements on productivity standards.


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

Protection against sexual harassment.


A)

A safe and healthy workplace.


B)
Wage levels required for a decent, humane level of
C) existence.
Plans for a family.
D)

All of the above.


E)

None of the above.


F)
3 4

3
Identify the proposition that challenges the argument for mandatory union membership:
Mandatory union membership allocates the benefits and
A) burdens of union membership in a fair and equal manner.
Whoever receives benefits from a process that entails costs
B) should share in the cost of providing those benefits.
Bargaining between employer and employees will be equal
only if the employees bargain for wages and benefits as
C) individuals.
Bargaining between employer and employees will be equal
only if the employees bargain for wages and benefits
D) collectively.
4 4

4
Determine which statement defends the idea that private employers do not have an obligation to
provide jobs for others:
Everyone needs a job to be able to satisfy his or her
A) instrumental and psychic needs.
The economic system of a society exists, fundamentally, for
B) the well-being of that society's members.
Employers have rights, although limited, to property and
C) also have their own right to work.
If citizens have a right to a job to fulfill their instrumental
and psychic needs, then some public institution has the
D) obligation to provide those jobs. Private employers can
fulfill that obligation more efficiently than government.
5 6

5
Select the statement or statements that represent an erosion of employment at will as a legal
doctrine:
Federal and state constitutions grant employees rights
A) against the government as their employer.
Union employees are protected from arbitrary dismissal by
B) their union contracts.
Civil rights laws protect employees from being fired because
C) of race, or sex, for example.
Federal and state laws protect employees who blow the
whistle on certain illegal or unethical acts committed by
D) their employers.

All of the above.


E)

None of the above.


F)
6 4

6
A procedural account of due process would preclude:
prior warnings, documentation, and written performance
A) standards;
a list specifying beforehand every possible reason for
dismissal and distinguishing them from unacceptable
B) reasons;

probationary periods;
C)
an appeal process and an opportunity to respond to
D) allegations.
7 6

7
Which statement fails to provide a valid reason in support of John McCall's claim that employees
have a right to participate in management decisions?
Human dignity is tied to the ability of humans to guide their
A) own lives and control their own destinies.
Fairness demand that each and every person affected by a
managerial decision must have an opportunity to represent
B) his or her own interests.
Employees who participate in and contribute to decision
C) making are less likely to suffer alienation and burnout.
Institutions that encourage and honor employee
participation will foster psychic goods of self-worth and self-
D) respect among employees.

All of the above.


E)

None of the above.


F)
8 4

8
Select the statement that might represent a valid objection to worker participation in
management decisions:
Private owners have property rights that include the right to
A) manage and direct the business.
Workers lack the expertise and knowledge to manage a
B) business.
Substantial conflicts that exist between the interests of the
firm and the interests of the employees are more likely to
C) occur than similar conflicts between the interests of
managers and the interests of the firm.
Any attempt to involve employees in decision making will be
D) inefficient.
9 4

9
According 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?
Employees are perfectly free to decide what level of risk
they are willing to accept for a corresponding level of
A) wages.
In a competitive free market, individual bargaining would
B) result in the optimal distribution of safety and incomes.
The means the market uses to gather information about
risks is to observe the harms done to the first generation
C) exposed to imperfect market transactions, market failures.
The threat of compensatory payments acts as an incentive
for employers to maintain a reasonably safe and healthy
D) workplace.
10 4

10
Select 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:
Certain decisions we make about how we live our lives play
A) a crucial role in defining our personal identity.
Privacy establishes the boundary between individuals and
B) thereby serves to define one's individuality.
The right to control certain very personal decisions and
information has little relevance to determining the kind of
C) person we are and the person we become.
To the degree that we value treating each person as an
individual we ought to recognize that certain personal
D) 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

2 2

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

A)TRUE

B)FALSE

3 2

3
The 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
responsibilities override other ethical considerations.

A)TRUE

B)FALSE

4 2

4
One 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

5 2

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

A)TRUE

B)FALSE

6 2

6
In 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

7 2

7
A 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

8 2

8
While 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

9 2
9
According 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

10 2

10
Some 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?
Enron had no reason for forming SRE's other than to create a
deceptive impression that it was in better financial shape that it
A) actually was.
Hedging risks by entering into agreements with oneself does not
B) lower risks.

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


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

All of the above.


E)

None of the above.


F)
2 4

2
Which statement is not true of the agency concept?

In actual fact, not all agents are employees.


A)
Under the common law tradition of the United States, all
B) employees are treated as agents of employers.
The primary responsibilities in the employer-agent relationship lie
C) with the employer.
The law has described the employee-employer connection as a
D) master-servant relationship.
3 4

3
Select 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:

Employees consent to obeying managers when they take a job.


A)
Employees who agree to obey employers are not truly abandoning
B) their own responsibility.
The choice of obeying someone's command or jeopardizing one's
job is a fundamentally coercive situation and, therefore, the
C) consent involved is not fully free.
Owners have property rights and have to be protected against the
D) harms they might suffer from employees.
4 4

4
Identify the statement that does not correctly present the fiduciary relationship that is said to
exist between managerial employees and employers:
Managers have special expertise that owners must rely on, so they
A) are given wider responsibilities .

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


B)
Because managers have greater freedom from day-to-day
supervision by owners, they are not generally understood to have
C) a strong fiduciary duty to always act in the best financial interest
of the owners.
The legal duties of loyalty, trust, obedience and confidentiality are
D) understood to override the manager's personal interests.
5 6
5
Identify the statements that reflect the varied owner interests corporate managers are supposed
to serve:
Investors buy stock because they believe in the company and its
A) products.

Investors are playing the stock for short-term gain.


B)
Investors see their stock ownership as an investment in a company
C) and its technology.
Investors see their stock ownership as a long-term investment for
D) personal retirement and security.

All of the above.


E)

None of the above.


F)
6 4

6
Which statement describes a managerial action that does not unethically impose costs upon
stockholders and other stakeholders?
The action imposes unwanted costs on stockholders and
stakeholder by giving up some alternatives in favor of others in the
A) interest of maintaining the fiscal stability of the enterprise.
A personal interest of a manager hinders the exercise of his or her
B) professional judgment.
A portion of some payment is kicked back to the payer as an
C) incentive to make the payment in the first place.
Financial advisers receive payments from a brokerage house to
pay for research and legal services that should be used to benefit
D) the advisers' clients, not the advisers' personal interests.
7 4

7
Select the statement that, ethically speaking, best represents a valid concept of what loyalty to
a firm means:
Loyalty means a willingness to sacrifice one's own interest by going
A) above and beyond ordinary employee responsibilities.
Loyal employees are expected to sacrifice for the firm even though
B) the firm is not necessarily bound to sacrifice for the employee.
Since the model of agency law lays a legal duty of loyalty on
employees, employees clearly have a corresponding ethical
C) responsibility to be loyal.
While a willingness to sacrifice might be a part of loyalty, it would
seem that devotion and faithfulness to a common good is both
D) more essential to loyalty and what explains the willingness to
sacrifice.
8 6

8
Identify 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:
Carr overestimates the prevalence and acceptability of dishonesty
A) within business.
Even if business did have its own set of ethical conventions, that
B) fact alone does not exempt it from ordinary ethical evaluations.
There are major disanalogies between business and games like
C) poker that weaken the conclusions drawn from Carr's analogy.
Unlike poker games, individual often have no choice but to
D) participate in business practices.

All of the above.


E)

None of the above.


F)
9 4

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

A threat of serious harm exists.


A)
The whistleblower has exhausted all internal channels for resolving
B) the problem.
The harm to be prevented overrides the harm done to the firm and
C) to other employees.
The whistleblower has good reason to believe that blowing the
D) whistle will prevent the harm.
10 4

10
Select the statement that is not a criticism of insider trading:
The insider benefits inappropriately by buying or selling the stock
at a price below or above what the market will demand when the
A) inside information is made public.
An insider can benefit by trading on bad news as well as good, and
B) this might be an incentive to work against the firm's best interests.
The insider's action sends the correct message to the market,
reflecting the stock's true value, moving the market toward
C) equilibrium.
The insider's information is often used without the firm's
D) 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.

TRUE
A)

FALSE
B)
2 2

2
Even 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).

TRUE
A)

FALSE
B)
3 2

3
Need 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.

TRUE
A)

FALSE
B)
4 2

4
Given 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.
TRUE
A)

FALSE
B)
5 2

5
The 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.

TRUE
A)

FALSE
B)
6 2

6
In 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.

TRUE
A)

FALSE
B)
7 2

7
The 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.

TRUE
A)

FALSE
B)
8 2

8
According 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.

TRUE
A)

FALSE
B)
9 2

9
Because 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.

TRUE
A)

FALSE
B)
10 2

10
Even 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.

TRUE
A)

FALSE
B)
Which ethical
question is
not relevant
to the process
of marketing a
product?
What responsibility do producers have for the quality and safety of their
A) products?

Who is responsible for harms caused by a product?


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

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


D)

All of the above.


E)

None of the above.


F)
2 6

2
Identify the statement that fails to reinforce the idea that the purchases made by consumers
may not be truly voluntary:
The more consumers need a product, the less free they are to choose.
A)
The consumer may experience anxiety and stress, e.g., when purchasing
B) an automobile.

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


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

All of the above.


E)

None of the above.


F)
3 6

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

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


A)
The customer is not clear about the calculation of the interest rate on a
B) leased product transaction.
The extended warranty conditions on a product have been fully disclosed
C) to a consumer.
Warning labels on a product have pointed out any potential hazards
D) associated with operating it.

All of the above.


E)

None of the above.


F)
4 4

4
Choose 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:

Impulse buying cannot be justified by appeal to consumer interests.


A)
The exchange is prima facie ethically legitimate because it assumes that
the individuals involved in the transaction act as free, autonomous agents
B) capable of pursuing their own ends.
The ever-increasing number of bankruptcies suggests that consumers
C) cannot purchase happiness.
Empirical studies provide evidence that greater consumption can lead to
D) unhappiness.
5 4

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

What caused an event to happen?


A)

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


B)

What was the agent's motive?


C)
Who was responsible for "caring for" a situation, accountable without any
D) suggestion of culpability, fault, or blame?
6 4

6
The strict products liability standard requires a manufacturer to compensate injured consumers:
Only if it can be shown that the manufacturer was at fault in causing or
A) failing to prevent a harm.
Even if the manufacturer was not at fault, even if there was nothing the
B) manufacturer could have done to prevent the harm.
Only if the manufacturer used fraud or coercion at the time the contract for
C) the product was agreed to by the consumer.
Only if the product's features were described in a deceptive manner in
D) advertising copy.
7 4

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

Strict liability adds significant hidden costs to every consumer product.


A)
Strict liability places domestic producers at a competitive disadvantage
B) with foreign businesses.
If it is unfair to penalize businesses for harms they couldn't prevent, it is
C) equally unfair to penalize consumers for harms they could not prevent.
Strict liability discourages product innovation and encourages frivolous and
D) expensive lawsuits.
8 6

8
Identify the statements that George Brenkert claims represent justifications that juries use to
hold manufacturers strictly liable but that are not fully convincing:
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
A) marketplace.
Manufacturers are best able to pay for the damages caused by their
B) products.
Compensation returns the parties to equal standing and the economic
C) competition can continue as a result.

Strict liability creates an added incentive for producing safe products.


D)

Answers A and C are correct.


E)

Answers B and D are correct.


F)
9 4

9
It 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?
Sellers extract extraordinarily high prices in situations where consumers
A) have few options for obtaining a needed product.
From the utilitarian perspective, consumers are always benefited by low
prices and balancing the benefits to buyers from low prices with the
B) benefits to sellers of high prices is the only ethical pricing issue.

Monopolistic pricing limits the variety of products available to consumers.


C)
The more uniformity of prices one finds within an industry, the less likely it
D) is that competition exists.
10 4

10
Select the statement that is at odds with the idea that pricing strategies may be unfair:
Large stores in competition with smaller stores can absorb losses from
undercutting the smaller stores on price, an option not available to the
A) smaller ones.
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,
B) the smaller ones may be driven from the market.
A competitive market should drive out uncompetitive firms by driving
C) prices down.
Government subsidies of one industry may keep alternative industries from
D) competing on price
Manipulation
of a person,
considered as
a process of
subtle
direction or
management,
does not
entail total
control of that
person.

TRUE
A)

FALSE
B)
2 2

2
It is impossible to manipulate someone without deceiving them.

TRUE
A)

FALSE
B)
3 2

3
Even 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.

TRUE
A)

FALSE
B)
4 2

4
Ethical 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.

TRUE
A)

FALSE
B)
5 2

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

TRUE
A)
FALSE
B)
6 2

6
The 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.

TRUE
A)

FALSE
B)
7 2

7
Robert 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.

TRUE
A)

FALSE
B)
8 2

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

TRUE
A)

FALSE
B)
9 2

9
Even 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.

TRUE
A)

FALSE
B)
10 2
10
Sales, 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.

TRUE
A)

FALSE
B)

Identify the
statement that
provides a
reason why
manipulation of
consumers is
not relevant to
marketing
ethics:
Knowing consumers' psychological profiles through marketing research, their
Amotivations, interests, desires, beliefs, anxieties and fears facilitates
manipulation of their behavior.
)

Some marketing practices target populations that are particularly susceptible to


Bmanipulation and deception.
)

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

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

EAll of the above.


)

FNone of the above.


)
2 4

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

ACigarette advertising aimed at children.


)

Ads aimed at elderly population for such goods as medicare supplementary


Binsurance, casinos and gambling, nursing homes, and funeral services.
)
Researching the criteria that a typical buyer uses to select a particular make and
Cmodel of automobile.
)

Selling an extended automobile warranty or theft protection products to a


Dcustomer who is anxious about the whole process of buying an automobile.
)
3 4

3
What 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?

AIt was a simple statement of a valid claim about the product.


)

It was an effort to call attention to the practice of selling the drug to hospitals at
Ba deep discount.
)
Johnson and Johnson wanted consumers to think that the medical profession and
Chospitals believed it was the most effective acetaminophen treatment on the
market.
)

Johnson and Johnson wanted to show its commitment to lowering medical costs
Dto consumers.
)
4 4

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

It is enough to prevent beforehand harms that deceptive practices might do


Brather than regulate them after the harms have been done.
)

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

Regulation might be too weak if it places the burden on consumers to prove the
Ddeception.
)
5 4
5
Select the statement that correctly describes the dependence effect derived from John Kenneth
Galbraith's ideas on consumer affluence:

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

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

Consumer demand depends on what producers have to sell. Demand is a


Cfunction of supply. Advertising creates wants.
)

Owners of productive capital depend on giving consumers what they want;


Dotherwise they would lose their investment.
)
6 6

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

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

If consumers pursue trivial and contrived products, market exchanges only


Bappear to increase overall satisfaction.
)

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


Cdesires.
)

DThe economy of the affluent society is contrived and distorted.


)

EAll of the above.


)

FNone of the above.


)
7 4

7
Identify 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:
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
Afact that he or she doesn't renounce it does not prove conclusively that it is an
) autonomous desire.
Dworkin's further claim that autonomy is a second-order capacity of persons to
Breflect critically on first order preferences and the capacity to accept or change
them in the light of higher order preferences and values.
)

Roger Crisp's claim that we need to know why a first-order desire is accepted,
Cand if not renounced, if it is indeed independent from, say, advertising.
)
Even if some consumer choices are not autonomous, nothing in Dworkin's or
DCrisp's analysis shows that advertising is responsible for violating autonomy, only
that some consumers do not act in a fully self-conscious way.
)
8 6

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

A person is vulnerable as a consumer because he or she is unable in some way to


Aparticipate as a fully informed and voluntary participant in the market exchange.
)

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


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

A person may be seen as vulnerable because he or she belongs to some ethnic


Dgroup, or is poor, or is a resident of a particular neighborhood.
)

EAnswers A and B are correct.


)

FAnswers A and C are correct.


)
9 6

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

Elderly persons vulnerable to injuries and illnesses might be compelled to make


Aconsumer choices based on fear or guilt.
)

A grieving family member might make choices for funeral services based on guilt
Bor sorrow.
)
An inner-city resident who is poor, uneducated, and chronically unemployed is
Cunlikely to weigh the consequences of using drugs or alcohol.
)

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

EAll of the above.


)

FNone of the above.


)
10 6

10
Select the statements that challenge the idea that marketers cannot be held liable for decisions
that any individual makes:
Marketing addresses populations, not, as sales do, individuals, so no direct
Acausal connection can be demonstrated between a marketing campaign and an
individual's choices to buy a product.
)

If marketing is ineffective in influencing consumer choice, the marketers selling


Btheir services to businesses are committing fraud.
)

CAny individual may choose not to buy a marketed product.


)

If marketing is effective and does influence consumer choices, it cannot disavow


Dresponsibility for the consequences of those choices.
)

EAnswers B and C are correct.


)

FAnswers 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

2 2

2
Non-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

3 2

3
Using natural objects as resources is, per se, of itself, an important ethical
issue from the ecocentric perspective.

A)TRUE

B)FALSE

4 2

4
In 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

5 2
5
According 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

6 2

6
Market 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

7 2

7
Although 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
to pay for it. Therefore, economic analysis legitimately includes beliefs in
addressing environmental policy.

A)TRUE

B)FALSE

8 2

8
Norman 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

9 2

9
If 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

10 2

10
There 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.

B)The moral standing of nonhuman living beings.

Anthropocentrical ethics allowing for responsibilities regarding


C)the nonhuman natural world.

Nonanthropocentrical ethics claiming that we have direct


moral responsibilities to The nonhuman natural world.
D)
2 4

2
According 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

3 4

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

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

Clear-cut forestry, hunting and fishing that threaten


B)endangered species.

C)Selective thinning of forests lands by logging

Selective hunting and killing as a means to protect


D)ecosystems from invasion by nonnative species.

4 6

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

Lost diversity among crops makes food production more prone


A)to disease and weather- related failures.

Plant diversity holds great promise for research into medicine


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

D)Biodiversity contributes to healthier ecosystems.

E)All of the above.

F)None of the above.

5 4

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

Human ingenuity and incentive has always found substitutes


A)for any shortages.

As the supply of any resource decreases, the price increases


B)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.

Trading certain environmental goods like rhinoceros horns,


D)tiger claws, elephant tusks, and mahogany on the black
market seriously threatens their viability.
6 4

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

Economics can only deal with wants and preferences because


A)these are what get expressed in an economic market.

Even though wants and beliefs are in different categories,


markets can measure the intensity of our wants by our
B)willingness to pay, and that fact, by extension, provides a
measurement as well for our beliefs or values.
When economics is involved in environmental policy, it treats
C)beliefs as if they are mere wants and thereby seriously
distorts the issues.
Wants are personal and subjective, while beliefs are subject to
rational evaluation. When environmentalists argue for
D)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.
7 6

7
Market analysis as applied to issues of the environment is ineffective
because:
It treats us always as consumers, not as citizens, threatening
A)our political process. It leaves no room for debate, discussion,
or dialogue in which to defend our beliefs with reasons.

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

As Mark Sagoff points out, environmental goals are views and


C)beliefs that cannot be priced by markets or economic analysis.

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

E)All of the above:

F)None of the above:

8 4

8
Select 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:

This approach underestimates the influence that business can


A)have in establishing the law.

The side constraints of law are a highly effective tool for


B)controlling managerial decisions that might affect the
environment.
Norman Bowie's proposed obligations on the part of business
to refrain from using its influence to shape environmental
C)regulation is a praiseworthy proposal but it's unlikely to have
any political effect.
This approach underestimates the ability of business to
influence consumer choice.
D)
9 4

9
Choose 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:
The services that resources yield can be provided in many
A)ways by substituting different factors of production and are,
therefore, infinite.

The possibility that the economy can grow indefinitely to keep


B)up with significant population growth is ignored by this model.

If resources are moved through the classical model of a


productive system at a rate that outpaces the productive
C)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.
Many resources like clean air, drinkable water, fertile soil, and
D)food cannot, under the circular flow model, be replaced by the
remaining factors of production.
10 4

10
Identify the statement that does not meet Natural Capitalism's principles for
the redesign of business to meet its environmental responsibilities:
To serve the needs of the poorest 75 percent of the world's
population, ecoefficient business practices focus on ways of
A)increasing efficiency and, therefore, decreasing resource use
by a factor of 5-10.
To serve the needs of the poorest 75 percent of the world's
B)population, the standard growth model would increase
economic growth by a factor of 5-10.
The principle of biomimicry attempts to eliminate by-products
once lost as waste and pollution and reintegrate them into the
C)production process or return them as a benign or beneficial
product to the biosphere.

Models of business as a producer of goods should be replaced


D)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.
TRUE
A)

FALSE
B)
2 2

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

TRUE
A)

FALSE
B)
3 2

3
Legal 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.

TRUE
A)

FALSE
B)
4 2

4
When 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.

TRUE
A)

FALSE
B)
5 2

5
To 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.

TRUE
A)

FALSE
B)
6 2

6
One 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.

TRUE
A)

FALSE
B)
7 2

7
One 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.

TRUE
A)

FALSE
B)
8 2

8
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.

TRUE
A)

FALSE
B)
9 2

9
The 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.

TRUE
A)

FALSE
B)
10 2

10
The "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.

TRUE
A)

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

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

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

White men comprise 65 percent of managerial positions in industry while women


C) hold 25 percent of them.
Forty percent of native-born working women fill positions classified as
"administrative support" and "service" while only 16 percent of male worker fill
D)such jobs.
2 6

2
Choose 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.

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

Property rights should prevail in hiring decisions.


C)

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

Answers A and B are correct.


E)

Answers B and D are correct.


F)
3 5

3
Identify 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:

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

A woman who has been hired at a lower salary than a male colleague because
B)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.
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
C) the male's salary level.

D)All of the above.

None of the above.


E)
4 6

4
Choose 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.

Deliberately recruiting qualified women and minority candidates.


C)

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

All of the above.


E)

None of the above.


F)
5 4

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

Giving preference to otherwise qualified but previously disadvantaged


A)candidates.

Identifying members of previously disadvantaged groups in the pool of qualified


B)candidates and giving them preference in the hiring decision.

Identifying members of previously disadvantaged groups in the pool of


candidates who are less qualified than white males and giving them preference in
C) the hiring decision.

Hiring members of disadvantaged groups with only minimal consideration given


D)to qualifications.

6 6

6
Identify 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.

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

Such policies should be rejected because they may create more discrimination as
C) a backlash against gender or racial preferences.
Preferential hiring is a means of providing more role models for young women
D)and people of color.

All of the above.


E)

None of the above.


F)
7 4

7
Select 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:

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

The son or daughter of a high-level executive in a publicly traded company


B)receives preferential hiring treatment.

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

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

8 4

8
Choose the statement that does not support the claim that justice requires preferential hiring
and promotion to compensate people for the harms they have suffered:
Preferential treatment equalizes the situation of unfair discrimination after the
A)fact and returns it to the point that it would have been had discrimination not
occurred.

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

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
C) previously enjoyed-something they did not deserve.

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

9 6

9
Select the statements that correctly reflect the Equal Employment Opportunity Commission's
guidelines defining sexual harassment:
Submission to unwelcome sexual advances, requests for sexual favors and other
A)verbal or physical content of a sexual nature is made either explicitly or implicitly
a term or condition of an individual's employment.

Submission or rejection of such conduct by an individual is used as a basis for


B)employment decisions affecting that individual.

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

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


D)an individual

All of the above.


E)

None of the above.


F)
10 4

10
Identify 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:

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

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

The reasonable "person" standard can have the effect of simply maintaining the
D)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
claim that
what we
take as
unethical is
ethically
acceptable
there.

A)TRUE

B)FALSE

2 2

2
The 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

3 2

3
One 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

4 2

4
Decisions 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

5 2

5
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

6 2

6
The 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

7 2

7
There 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

8 2
8
Defenders 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

9 2

9
Defenders 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
be accused of supporting undemocratic policies.

A)TRUE

B)FALSE

10 2

10
Even 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
Internationa
l Monetary
Fund (IMF),
the World
Bank, and
the G8 that
are accused
of helping
only the rich
and harming
the poor:
These institutions demand that developing economies remove tariffs in their own
Aeconomies while tolerating protectionist tariffs for industries in the developed
economies.
)

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

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

Continued subsidies within developed countries that protect domestic industries


Dprevent poorer countries from doing business with wealthier populations.
)
2 6

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

It is a mistake to conclude too quickly that because cultures are diverse, they
Anecessarily hold diverse ethical values.
)
Given different circumstances, conduct that might be condemned or excused in
Bone context might be excused or condemned in another. But, excusing unethical
behavior is not the same as justifying it.
)

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

EAll of the above.


)

FNone of the above.


)
3 6
3
Which of the following rights might clearly be the sole responsibility of government rather than
of international business?

AThe right to minimal education.


)

BThe right to nondiscriminatory treatment.


)

CThe right to physical security.


)

DThe right to a fair trial.


)

EAnswers #1 and #4 are both correct.


)

FAnswers #3 and #4 are both correct.


)
4 6

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

International trade agreements such as the General Agreement on Tariffs (GATT)


Aand the North American Free Trade Agreement (NAFTA) have been established.
)

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

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

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

EAll of the above.


)

FNone of the above.


)
5 4

5
Select the reasoning that challenges support for the ethical case for free trade and international
economic cooperation:
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
Adistribute those resources in ways that will produce the greatest good for the
) greatest number of people.

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

Economic integration is a major impediment to conflict: the more countries


Ccooperate economically, the less likely they will want to go to war.
)
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
Dthese jobs than they would be without them, the choice to work under such
) conditions is little more than extortion and exploitation by business.
6 5

6
Choose 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:

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

BPay wages and benefits that are very similar in the home and host countries.
)
If it takes two people earning minimum wages to support a family of four just
Cabove the poverty level in the United States, a minimum wage in the host country
would be similarly determined.
)

DAll of the above.


)

ENone of the above.


)
7 4

7
Choose 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:
To benefit from less-costly local labor, business should hire workers directly and
Atake full and direct responsibility for how they are treated.
)

Hiring individuals as contractors on a per-item basis avoids having to pay fair


Bwages and benefits.
)

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

Local firms are better equipped to recruit competent workers who will be satisfied
Dwith minimum wages.
)
8 6

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

AProtecting the environment.


)

BProtecting workers and consumers.


)

CProtecting family farms.


)

DProtecting domestic industries.


)

EAll of the above.


)

FNone of the above.


)
9 6

9
Which 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"?

AGetting rid of quotas and domestic monopolies.


)
BPrivatizing state-owned industries and utilities.
)

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

DRestricting imports.
)

EAll of the above.


)

FAll of the above.


)
10 4

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

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

Private multinational corporations are replacing legitimate governments as the true


Binternational decision makers.
)
The policies of the "Golden Straitjacket" are simply rational requirements for a
Cnation that chooses prosperity over poverty. Financial and economic norms are
analogous to scientific laws discovered by social scientists.
)
Global market capitalism fueled by multinational corporations seeks to expand
Dworldwide markets for their products and creates a cultural homogenization which
threatens local cultures and traditions
)