Study Guide-Ethics – Flashcards
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Ethics
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refers to the study of the general nature of morals and of the specific moral choices a person makes.
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Moral relativism
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holds that there is no universal moral truth but only people's individual beliefs, perspectives, and values. Each person, therefore, has his or her own ideas of right and wrong.
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Situational ethics
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is based on the idea that people make decisions based on a specific situation instead of universal laws.
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Judeo-Christian ethics
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refers to the common set of basic values shared across both Jewish and Christian religious traditions.
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Unethical behavior
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does not conform to a set of approved standards of social or professional behavior, whereas amoral behavior is when a person has no sense of right and wrong and no interest in the moral consequences of his or her actions.
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Personal ethics
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are a set of principles that guide the decisions you make in your life. Life experiences offer all of us opportunities to develop our personal ethics.
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Price fixing
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occurs when a group of companies agree among themselves to set a product's price, independent of market demand or supply.
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Who is Mark Whitacre
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a senior executive with agricultural giant Archer Daniels Midland, or ADM, was involved for years in a multinational price-fixing scheme. Based on such price fixing, ADM stole millions of dollars from its customers by agreeing with its competitors to set a product's price.
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About Mark Whitacre
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a participant in all illegal activities and was set to rise to the very top of the organization. His wife, however, became increasingly conflicted with what was happening at ADM and with her own ethical values. She finally threatened to divorce Whitacre unless he found a way to end his involvement.
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Code of Ethics
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is a written statement of a company's commitment to certain ethical practices.
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mission statement
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defines the core purpose of the organization—why it exists—and often describes its values, goals, and aspirations.
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social audit
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reports how well a company is meeting its social responsibilities and is usually conducted by a third party.
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corporate philanthropy
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donating some of their profits or resources to charitable organizations. The text mentions Target, which donates 5% of its pretax profits to charity.
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Sustainability
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is the process of working to improve the quality of life in ways that simultaneously protect and enhance the Earth's life support systems.
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1) The main function of economics is to study ________. A) the exchange of goods and services between individuals, businesses, and nations B) the exchange of cultural information in a diverse society C) the stock exchange D) the exchange of diplomatic relations between nations E) the exchange of ideas about motivation and behavior in the workplace
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A) the exchange of goods and services between individuals, businesses,and nations
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2) Celeste is interested in studying the effects that natural disasters have on the value of goods and services in the affected areas. Her area of study should be ________. A) marketing B) microeconomics C) macroeconomics D) sociology E) sustainability
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B) microeconomics
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3) Joseph took a class in macroeconomics, which means that he was studying the behavior of ________. A) individual businesses B) people with limited resources C) the overall economy D) corporate executives E) Fortune 500 companies
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C) the overall economy
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4) A free market economy is one in which ________. A) the government or other centralized group determines what to produce B) individuals determine what to produce with some level of government involvement C) a tightly knit social network barters and trades for goods at a market D) individuals and private firms make decisions based on consumer needs and wants E) privately owned, profit-seeking enterprises are converted to government-owned production and services
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B) individuals determine what to produce with some level of government involvement
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5) A mixed economy is one in which ________. A) both resources and means of production are extremely limited and generally confined to agricultural produce B) the government or other centralized group determines and controls all resources and means of production C) both individuals and government control resources and determine production methods D) either individuals or private firms control resources and determine production methods E) there is no government intervention whatsoever in industry
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C) both individuals and government control resources and determine production methods
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6) A planned economy is one in which ________. A) the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group B) individuals produce enough for personal survival with few resources or goods left over to trade or barter C) individual income ultimately controls purchasing decisions D) government distributes some goods and services through selected social programs, and individual income determines purchasing decisions for other goods and services E) the production and pricing of goods and services is determined through the operation of a market
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A) the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group
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7) John is an employee at a car manufacturer. Today he has come into work to find that production has stopped because the government has determined that the steel used in the cars will be better used in the manufacture of a new railway line. John doesn't mind, because although his wages are low, he gets paid whether there is any work for him to do or not. John MOST likely lives in a ________. A) traditional economy B) planned economy C) market economy D) mixed economy E) capitalist economy
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B) planned economy
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8) Which of the following statements is NOT true of a market economy? A) The pricing of goods is determined by what sellers wish to charge and buyers wish to pay. B) The system encourages private ownership of resources. C) The individual makes his or her own economic decisions. D) The government may supply some goods or services E) The economy is defined by a freedom of choice for both buyers and sellers.
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B) The system encourages private ownership of resources.
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9) ________ is one of the countries closest to having a planned economy, and ________ is one of the countries closest to having a market economy. A) Russia; Singapore B) India; Norway C) Russia; Norway D) Cuba; Singapore E) Canada; China
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D) Cuba; Singapore
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10) Which transaction best describes bartering? A) an exchange of goods for currency, in which the price of something is determined by establishing its value against an underlying commodity B) a transfer of goods without an exchange of currency, in which the price of something is determined by the seller, and the buyer agrees to pay at a later time C) an exchange of goods without an exchange of currency, in which the price of something is determined by the needs and resources of each person involved in the exchange D) an exchange of goods for currency, in which the price of something is determined by what buyers are willing to pay E) an exchange of currency without an exchange of goods, in which the price of something is determined by what sellers demand
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C) an exchange of goods without an exchange of currency, in which the price of something is determined by the needs and resources of each person involved in the exchange
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11) Mae's Country Kitchen sells out of her cinnamon rolls every morning before 8:30 a.m., and her later customers ask her to make more. The next day, Mae makes an additional two dozen cinnamon rolls and raises the price of an individual cinnamon roll by 50¢. She sells all but one of them. Mae has found the ________ price of her cinnamon rolls. A) market B) supply C) demand D) determinant E) surplus
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A) market
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12) The amount of a product or service that is available for purchase at any given time is called ________. A) commodity B) surplus C) supply D) demand E) shortage
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C) supply
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13) Prices become higher when a unique and highly desirable item is auctioned ________. A) because the supply and demand are equal B) because the demand is higher than the supply C) because the supply is higher than the demand D) because the supply and demand are kept unknown E) because the demand is lower than the supply
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B) because the demand is higher than the supply
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14) According to the law of supply, the amount of a good or service supplied will increase as the price increases, and decrease as the price decreases. This direct relationship exists because ________. A) supply is not dependent on the resources required to produce the product B) supply is derived from a producer's desire to maximize profit C) supply is affected by the number of suppliers D) supply is not affected by the quantity of similar or substitute products E) supply is affected by changes in technology
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D) supply is not affected by the quantity of similar or substitute products
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15) A supply curve illustrates ________. A) that as supply decreases, demand decreases B) the effects of price on quantity supplied C) the effects of price on quantity demanded D) that as supply increases, the price stays the same E) the effects of changes in resource prices on supply
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C) the effects of price on quantity demanded
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16) ________ refers to how much of a product or service people want to buy at any given time. A) Commodity B) Surplus C) Supply D) Demand E) Equilibrium
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D) Demand
