Business Ethics
1. Problems with the utilitarian reliance on measurement include: (Points : 1)
Comparative measures of the values things have for different people cannot be made; we cannot
get into each others' skins to measure the pleasure or pain caused.
All benefits and costs are possible to measure.
The potential benefits and costs of an action cannot always be reliably predicted.
All the above
A&C
2. Cost-benefit analysis is used to determine the desirability of investing in a project (such as a
dam, factory, or public park) by figuring whether its present and future economic benefits
outweigh its present and future economic costs. (Points : 1)
True False
3. Considerations to follow in determining what the moral thing to do might be are: (Points : 1)
You must determine what alternative actions are available.
You must estimate the direct and indirect costs and benefits the action would produce for all
involved in the foreseeable future.
You must choose the alternative that produces the greatest sum total of utility.
All the above
A&C
4. Rule utilitarianism looks only at moral rules of a particular action. (Points : 1)
True False
5. Utilitarianism characterizes the moral approach taken by Ford in the infamous Pinto case
study. (Points : 1)
True False
6. Intrinsic goods are things that are desired for their own sake, such as health and life. (Points :
1)
True False
7. UNOCAL worked with the Burmese army to push the pipeline using forced labor. (Points : 1)
True False
8. Immanuel Kant's principle, called the categorical imperative, requires that everyone be treated
as: (Points : 1)
A free and equal person
A dependent employee
An indentured person
A non-resident employee
9. Negative rights are defined entirely in terms of the duties others have not to interfere with you.
(Points : 1)
True False
10. Utilitarianism is attractive to many because it matches the views we tend to hold when
discussing governmental policies and public goods. (Points : 1)
True False
11. According to Locke, the power of government should be: (Points : 1)
Expanded to meet the needs of all citizens.
Expanded to meet the needs of corporations.
Limited, extending only far enough to protect basic rights of all citizens.
Limited, extending only far enough to protect the basic rights of corporations.
12. Locke's view that labor creates property rights has been influential in the U.S. (Points : 1)
True False
13. According to the text, Zimbabwe is the number two ranking region in sub-Sahara Africa for
high HIV and AIDS outbreaks. (Points : 1)
True False
14. Modifying Locke's views on free markets, Adam Smith's arguments rest on __________
arguments that unregulated markets and private property will produce greater benefits than any
other system. (Points : 1)
Kantian
Utilitarian
Communist
None of the above
15. Social Darwinists had a different take on the utilitarian justification for free markets. They
argued that economic competition would not produce human progress. (Points : 1)
True False
16. According to Smith, when private individuals are left free to seek their own interests in free
markets, they will inevitably be led to further the public welfare by an "invisible hand." (Points :
1)
True False
17. Many economists now advocate retaining the market system and private property while
modifying their workings through government regulation. This is known as a: (Points : 1)
Pure capitalist economy
Evolutionary economy
Mixed economy
Free market economy
18. Karl Marx offers the most critical view of modern private property and free market
institutions. Marx claims that free-market capitalism necessarily produces: (Points : 1)
Extremes of inefficiency
Extremes of efficiency
Extremes of equality
Extremes of inequality
19. Smith's utilitarian argument is most commonly criticized for making what some call
unrealistic arguments. (Points : 1)
Smith assumes that no one seller can control the price of a good.
Smith assumes that the manufacturer will pay for all the resources used to produce a product.
Smith assumes that humans are motivated only by a natural, self-interested desire for profit.
All the above
B&C
20. The basic problem underlying the views of the social Darwinist is the fundamental normative
assumption that survival of the fittest means survival of the best. (Points : 1)
True False