Business Ethics Test 2 – Flashcards
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Which of the following historical stages of capitalism came first?
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Mercantile
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A basic tenet of capitalism is that
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capitalism requires private ownership of the major means of production
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The concept of the "invisible hand" means
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pursuit of private gain will bring the best overall results
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Some critics of capitalism believe that it rests on a flawed view of human beings because
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capitalism assumes that well-being comes from greater material consumption
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An exclusive focus on short-term performance
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has helped to create a high-pressure environment conducive to fraud
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Marxism states
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capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands
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Which statement about the evolution of capitalism is correct?
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In state welfare capitalism the government plays an active role in regulating economic activities in an effort to smooth out the boom-and-bust pattern of the business cycle
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Though many jobs are outsources, most economists believe
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the economy will continue to create new jobs in the USA
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Evidence for the idea what American manufacturing is declining is
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the fact that government new employs more people than manufacturing
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According to one survey of cultural values
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Americans typically value things like their children's education and a satisfactory love life more than work
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The statement that accurately describes corporation is
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corporate shareholders have limited liability for their debts
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Corporations differ from partnerships and other forms of business association in two ways. One of these is that
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they must be publicly registered in or some way officially acknowledged by the law
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In Citizens United vs. Federal Elections Commission, the U.S. Supreme Court
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upheld first Amendment right of corporations to spend money to support political candidates.
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Milton Friedman argues that
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a business's only social responsibility is to maximize profits within the rules of the game
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Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when
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there is an imbalance of knowledge between buyer and seller
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Externalities are
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unintended side-effects
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The debate over corporate moral agency hinges on which issue?
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Individual responsibility
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The idea that corporations are moral agents
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is accepted by many people and companies without hesitation
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Most Americans believe a corporation's top obligation is to its
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employees
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Adam Smith proposed that in our pursuit of economic interests we are led by
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an invisible hand to promote general good
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The case of MacPherson vs. Buick Motor Car in 1916 change product liability law. As a result of it, the courts
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permitted consumers to sue manufacturers with whom they had no contractual relationships
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According to the legal doctrine of strict product liability
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a manufacturer need not be negligent to be held liable for a defective product
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Legal paternalism is the doctrine that the law
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may justifiably restrict the freedom of the individual for his or her own good
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The case of the FTC vs. Standard Education was important in the legal transition
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toward something like the ignorant consumer standard
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According to Galbraith's "dependence effect"
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producers use advertising to shape consumer wants
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Critics of advertising generally agree that
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advertising rarely gives consumers much useful information
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Caveat emptor means
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let the buyer beware
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In 1972 Congress created one of the most important agencies for regulating product safety. This agency is the
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Consumer Product Safety Commission
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Which of the following is an example of price gouging?
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New York hotels that doubled or tripled their prices in the aftermath of the September 11, 2001, attacks
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Statistically, there is strong evidence that exposure to television advertising is strongly associated
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obesity in children under twelve
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An ecosystem
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can be upset by human behavior
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The "tragedy of the commons" is
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that individual pursuit of self-interest can sometimes make everyone worse off
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The moral theorist William T. Blackstone claims that the right to a livable environment
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is a fundamental human right
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Which environmental statement is true
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Tropical forests are the earth's richest, oldest, and most complex ecosystems
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Concerning future generations,
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the social and environmental policies we adopt can affect who is born in the future
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According to the anthropocentric (or human-oriented) ethic of Baxter and others,
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the Grand Canyon is valuable only because people care about it
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Which of the following is true of factory farms?
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They permit the mass production of meat at low prices
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Which of the following is true of a regulatory approach to environmental problems?
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It requires the EPA or the other body to determine the most effective, feasible pollution-control technology for each different industry. "
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"Pollution permits" are an example of which of the following methods of achieving our environmental goals?
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pricing mechanisms
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The philosopher Tom Regan
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claims that no impartial morally sensitive person could approve of the treatment of animals in factory farms if he or she knew what was going on
