 |
| 1 | |
Adam Smith, who believes that capitalism is the best route to human happiness, viewed capitalism as |
| | A) | a system of free checks and balances. |
| | B) | a new way of creating markets. |
| | C) | an efficient use of resources and manpower. |
| | D) | the wealth of nations. |
|
|
|
| 2 | |
Karl Marx and Friedrich Engels, who do not believe that capitalism is the best route to human happiness, predicted that a "free enterprise" system would lead to |
| | A) | poverty for the masses. |
| | B) | servitude of the workers. |
| | C) | periodic crises of the economy. |
| | D) | all of the above |
|
|
|
| 3 | |
Josef Wieland, who believes that restructuring a corporation's rules makes a moral difference, contends that there is a connection between corporate governance and business ethics, which involves |
| | A) | the board of directors, suppliers, and customers. |
| | B) | management, governance, and control regimes of a firm and its ethics as an organization. |
| | C) | shareholders, the public, and the government. |
| | D) | none of the above |
|
|
|
| 4 | |
Ian Maitland, who does not believe that restructuring a corporation's rules makes a moral difference, argues that governance ethics of the firm will not have any effect on the corporation's moral performance but could have consequences that include |
| | A) | impairing the corporation's efficiency. |
| | B) | creating wealth. |
| | C) | increasing cooperation among employees. |
| | D) | decreasing employee morale. |
|
|
|
| 5 | |
What does Milton Friedman, who believes that increasing profits is the only social responsibility of business, observe when business leaders speak about social responsibility in a free-enterprise system? |
| | A) | They are preaching pure and unadulterated socialism. |
| | B) | Business is not following its directive. |
| | C) | The acts of the corporation/business are ruled by law. |
| | D) | The business spokesman is really not responsible. |
|
|
|
| 6 | |
Joe DesJardins, who does not believe that increasing profits is the only social responsibility of business, subscribes to a philosophy that says “poverty anywhere is a threat to _______ everywhere.” |
| | A) | decency. |
| | B) | prosperity. |
| | C) | humanity. |
| | D) | democracy. |
|
|
|
| 7 | |
Robert C. Solomon, who believes that individual virtue can survive corporate pressure, argues that whatever the structures, a person of virtue |
| | A) | has an opportunity to make limited decisions. |
| | B) | can create the type of business atmosphere that they want work in. |
| | C) | has free choices and can create a good moral tone. |
| | D) | has far too much importance in the company. |
|
|
|
| 8 | |
Gilbert Harman, who does not believe that individual virtue can survive corporate pressure, |
| | A) | argues for individual influences in business. |
| | B) | presents facts for change in a corporate environment. |
| | C) | outlines the moral obligations of employees. |
| | D) | is a powerful determinist that concludes no individual can make a difference in a group enterprise. |
|
|
|
| 9 | |
Justin Welby, who believes that the risks of derivatives are manageable, points out that, although they are not a controlling group, the most powerful group in a commodity typically are the: |
| | A) | intermediaries. |
| | B) | “silent” overseers. |
| | C) | producers. |
| | D) | consumers. |
|
|
|
| 10 | |
Thomas A. Bass, who does not believe that the risks of derivatives are manageable, describes how easily the black market can play into the derivatives market when he identifies derivatives as a kind of: |
| | A) | zombie institution. |
| | B) | financial speakeasy. |
| | C) | toxic waste. |
| | D) | shadow banking system. |
|
|
|
| 11 | |
Jeremy Snyder, who believes that price gouging should be regulated, has observed that anti-gouging legislation is typically triggered by: |
| | A) | the declaration of a state of emergency or disaster. |
| | B) | a shift in leadership. |
| | C) | political posturing. |
| | D) | corporate scandals. |
|
|
|
| 12 | |
Matt Zwolinski, who does not believe that price gouging should be regulated, says that what undermines equitable access to goods is: |
| | A) | the emergency. |
| | B) | lack of initiative. |
| | C) | regulated price gouging. |
| | D) | greed. |
|
|
|
| 13 | |
Richard Rosen, who believes that the Enron collapse shows that we need more regulation of the energy industry, argues that after the collapse of Enron and the soaring prices of energy in California it was necessary to |
| | A) | recall the Governor of California. |
| | B) | combine all the California Public Utilities into one monopoly. |
| | C) | find other private providers of energy. |
| | D) | have more government oversight. |
|
|
|
| 14 | |
Christopher L. Culp and Steve H. Hanke, who do not believe that the Enron collapse shows that we need more regulation of the energy industry, state that the answer to Enron's problem was really linked to |
| | A) | mismanagement of the company. |
| | B) | poor communications between the officers of the company and the board of directors. |
| | C) | taxes, regulation, and other institutional frictions. |
| | D) | aggressive accounting and disclosure policies. |
|
|
|
| 15 | |
According to Sissela Bok, who believes that blowing the whistle violates company loyalty, "whistle-blowing" is a new label generated by the |
| | A) | dangers in the workplace. |
| | B) | need to keep employers on their toes. |
| | C) | public's increased awareness of the ethical conflicts encountered in the workplace. |
| | D) | news media's willingness to pay for stories. |
|
|
|
| 16 | |
Robert A. Larmer, who does not believe that blowing the whistle violates company loyalty, refutes Ronald Duska's view that employees do not have even a prima facie duty of loyalty to their employers. Which one of the following defenses does Larmer not employ? |
| | A) | Loyalty that is not entirely reciprocated is not necessarily misplaced. |
| | B) | It is not impossible for an employee to know what's in the company's best interests. |
| | C) | A company may be thought of as a moral agent. |
| | D) | Although the primary motive for working is economic, questions of loyalty are not irrelevant. |
|
|
|
| 17 | |
Chauncey M. DePree, Jr. and Rebecca K. Jude argue that employers have both a right and a duty to monitor their workers’ e-mail messages in order to: |
| | A) | ensure reasonable productivity. |
| | B) | protect company secrets. |
| | C) | assess employee morale. |
| | D) | protect the corporation from legal liability. |
|
|
|
| 18 | |
The privacy issue that confronted the last generation of workers was their use of: |
| | A) | company telephones. |
| | B) | their expense accounts. |
| | C) | recreational drugs outside business hours. |
| | D) | company-owned supplies and equipment. |
|
|
|
| 19 | |
According to Epstein, the most efficient use of labor in the marketplace requires |
| | A) | Firm commitments to long contracts |
| | B) | Covenants that entail lifelong relationships |
| | C) | Flexibility to terminate contracts at will |
| | D) | No agreement at all between employer and employee |
|
|
|
| 20 | |
Epstein's defense of Employment At Will rests on |
| | A) | The Natural Law |
| | B) | General consensus that contracts should be easy to terminate |
| | C) | The financial power wielded by wealthy employers |
| | D) | The Common Law presumption of freedom |
|
|
|
| 21 | |
Chief executive salaries have risen enormously over the past two decades in large part because shareholders: |
| | A) | have not been paying sufficient attention. |
| | B) | grant decision-making power to the boards of directors, who are often CEOs of other companies. |
| | C) | believe few people have the drive and ambition to reach the CEO level. |
| | D) | wish to reward company leaders for the increase in the stock price. |
|
|
|
| 22 | |
Possibly the worst effect of rapidly rising compensation for executives is that it: |
| | A) | diminishes shareholder returns. |
| | B) | creates envy in other CEOs, leading to further increases. |
| | C) | comes at the expense of fair compensation for workers. |
| | D) | leads to a faster effort to fire a CEO when stock prices falter. |
|
|
|
| 23 | |
Consumers began asking more questions about the prescription drugs they were taking in the 1960s and 1970s in large part because: |
| | A) | prices were rising. |
| | B) | there were a number of reports of fatal drug reactions. |
| | C) | pharmacies were more likely to be part of a chain, rather than family-owned. |
| | D) | more patients were taking multiple prescription drugs. |
|
|
|
| 24 | |
According to Sidney Wolfe, patients have dangerous misperceptions about direct-to-consumer advertising, with one study finding that a substantial proportion of people believed that the only drugs that could be advertised were those: |
| | A) | without a generic alternative. |
| | B) | used to treat chronic conditions. |
| | C) | that had been available to patients for a decade or more. |
| | D) | judged the safest and most effective by the FDA. |
|
|
|
| 25 | |
According to Mark Dowie, who believes that Ford Motor Company was to blame in the Pinto case, the reason that the 1977 Pinto passed the crash test in Phoenix, Arizona, was |
| | A) | test-givers lowered the speed at which the rear-end collision occurred. |
| | B) | safety standards are less stringent in Arizona. |
| | C) | the Pinto used in the test was manufactured in Canada. |
| | D) | the car used to collide with the Pinto was of inferior quality. |
|
|
|
| 26 | |
According to Ford Motor Company, which does not believe that it is to blame in the Pinto case, the company undertook to build a subcompact car for all of the following reasons except to |
| | A) | make a profit for stockholders. |
| | B) | better compete with General Motors. |
| | C) | take on the imports. |
| | D) | save jobs for Americans. |
|
|
|
| 27 | |
Philip L. Bereano, who believes that we should require labeling for genetically modified food, argues that the demand for a label for genetically engineered food products is legitimate based upon |
| | A) | the First Amendment right of free speech. |
| | B) | our interest in knowing the process by which food is produced. |
| | C) | the patent office rules. |
| | D) | previous experiences. |
|
|
|
| 28 | |
With regard to the law governing labeling of foods, John A. Levitt, who does not believe that we should require labeling for genetically modified food, contends that labels must |
| | A) | include where items are produced, how they are produced, and by whom. |
| | B) | contain all the product's contents, be age specific, and note allergic reaction possibilities and shelf life. |
| | C) | state possible health risks, or where there is danger that a product's marketing claims may mislead the consumer as to the food's characteristics. |
| | D) | reveal the breeding techniques used in producing the food. |
|
|
|
| 29 | |
Manuel Velasquez argues that multinational corporations are free from moral obligation only if the interactions are |
| | A) | nonrepetitive, and agent reliability is not possible. |
| | B) | done by U.S. multinational corporations. |
| | C) | overseen by the United Nations. |
| | D) | done by foreign corporations, not the United States. |
|
|
|
| 30 | |
John E. Fleming, who does not believe that multinational corporations are free from moral obligation, believes that the very nature of the corporation managers in a competitive environment fosters |
| | A) | mean-spirited decisions in foreign communities. |
| | B) | corporate social responsibility and concern for the environment. |
| | C) | poor communications with local governments. |
| | D) | illegal price fixing and controls. |
|
|
|
| 31 | |
Denis G. Arnold and Norman E. Bowie, who believe that sweatshops are an inhumane business practice, interpret the writings of Kant when they say that indifference is: |
| | A) | more a matter of outward perception than inward reality. |
| | B) | one thing to one person and quite another to the next person. |
| | C) | a denial of respect. |
| | D) | a primal instinct. |
|
|
|
| 32 | |
Gordon G. Sollars and Fred Englander, who do not believe that sweatshops are an inhumane business practice, contest Arnold and Bowie’s claim that multinational enterprises (MNEs) have a duty to: |
| | A) | pay a subsistence wage above market levels. |
| | B) | their shareholders. |
| | C) | one another. |
| | D) | preserve a positive popular opinion. |
|
|
|
| 33 | |
Jeremy Rifkin, who believes that patenting life should be forbidden, asserts that while the twentieth century was shaped by breakthroughs in physics and chemistry, the twenty-first century will belong to |
| | A) | the agricultural sciences. |
| | B) | the biological sciences. |
| | C) | pharmaceutical companies. |
| | D) | bioremediation. |
|
|
|
| 34 | |
William Domnarski, who does not believe that patenting life should be forbidden, views Rifkin as |
| | A) | intelligent but misguided. |
| | B) | a modern-day Charles Darwin. |
| | C) | a prophet of doom. |
| | D) | a fool. |
|
|
|
| 35 | |
John Shanahan, who believes that environmental restrictions violate basic economic freedoms, argues that many government environmental policies will infringe on the fundamental style of American life because |
| | A) | government policies are unreasonable and infringe on basic economic freedoms. |
| | B) | the prospect of a cooperative effort with industry and government is unacceptable. |
| | C) | industry cannot operate under restrictions on environmental damage. |
| | D) | government policies take away profits of industry and give them to the environmentalists. |
|
|
|
| 36 | |
Paul R. Ehrlich and Anne H. Ehrlich, who do not believe that environmental restrictions violate basic economic freedoms, outline the consequences of mismanaged environmental issues, maintaining that objections to environmental protections are |
| | A) | only raised by a small, vocal group. |
| | B) | made by the states' rights advocates who do not want federal laws passed. |
| | C) | simply oblivious to the outcomes. |
| | D) | self-serving and based in bad or misused science. |
|
|
|
| 37 | |
Julie Stauffer argues that the healthiest way to replenish our bodies need for water is |
| | A) | to drink 10 to 12 cups a day. |
| | B) | study federal standards on tap water. |
| | C) | eat lots of water filled fruits and veggies. |
| | D) | drink filtered or bottled water. |
|
|
|
| 38 | |
The "contaminants" Ms. Stauffer said should set off alarms are |
| | A) | murkey color due to pipes eroding. |
| | B) | taste odd due to well water. |
| | C) | Pathogens, pesticides and lead. |
| | D) | Minerals |
|
|
|
| 39 | |
The curve for when oil supplies are expected to run out has lengthened in recent years in large part because: |
| | A) | the world is consuming less oil. |
| | B) | new reserves have been discovered. |
| | C) | oil recovery technology has progressed. |
| | D) | statistical analysis has become better. |
|
|
|
| 40 | |
Oil reserve growth, as explained by Red Cavaney, is the result of all of the following factors except: |
| | A) | technological advancement in exploration and production. |
| | B) | increases over initially conservative estimates of reserves. |
| | C) | economic changes. |
| | D) | closer relationships with oil-producing countries. |
|
|
.