Study Guide Test 1* Amartya Sen- Does Business Ethics Make Economic Sense? – Flashcards
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The question that people usually ask is?
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whether business can be morally good.
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Amartya Sen knows that many people are inclined to think?
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that business ethics does not make economic sense
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Why do people think business ethics does not make economic sense?
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because they have been influenced by a famous example found in the writings of Adam Smith.
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Adam Smith
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was one of the earliest writers who attempted to formulate a science of economics.
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Today, many people have heard of Adam Smith's analysis of?
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the motives people have when they exchange things.
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Does the example of the butcher, baker, and brewer support the conclusion that business ethics makes economic sense?
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Yes
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In exchanges, people may be motivated by?
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self interest, or by the good of others, or by the avoidance of harm to others.
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At the time Sen wrote this article, Japan and other East Asian countries were enjoying?
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economic success.
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Sen has other arguments about whether economic production can fully achieve its purposes without relying on morality. The most familiar examples involve?
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producing things that we consume as individuals, such as detergent, candy, vehicles, etc.
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The bad effects of the smoke are outside of the market, and so economists would describe them as?
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"externalities."
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failures of resource allocations examples?
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The market fails to supply public goods. The market also lets companies produce bad externalities.
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When businesses are carrying out their own stated purpose, they are?
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supplying all of the products and services that consumers demand, at prices that consumers are willing to pay.
