Question 1

Economic reasoning describes how we .&#10;A)ought to reason&#10;B)prioritize our desires&#10;C)reason when pursuing our goals&#10;D)would reason if we could have whatever we wanted

Accepted Answer

Economic reasoning describes how individuals make decisions about pursuing their goals based on their constraints, incentives, and opportunities. It is not about how we "ought" to reason or prioritizing desires. It is also not about what we would do if we could have whatever we wanted, as economic reasoning takes into account scarcity and trade-offs.

Question 2

If a business manager decides to proceed with a course of action although the manager has information that suggests the need to rethink the decision,the manager is being influenced by&#10;A)anchor heuristic&#10;B)confirmation bias&#10;C)sunk cost bias&#10;D)adjustment heuristic

Accepted Answer

The scenario described is an example of sunk cost bias, which occurs when a decision-maker continues a certain course of action because they have already invested time, money or resources into it, even though there is evidence that may suggest reconsideration. The manager is unable to let go of the sunk costs associated with the original decision, leading to irrational decision-making.

Question 3

It is not ethically sufficient to obey the law because&#10;A)the law does not apply to business in general&#10;B)ethical constraints sometimes require that the law be ignored&#10;C)ethics goes beyond what can be legally codified&#10;D)the law itself is stricter than ethics

Accepted Answer

Ethics is a broader concept than the law and encompasses moral principles that cannot always be codified or enforced by law. Therefore, blindly obeying the law may not be sufficient from an ethical standpoint.

Question 4

The economic character of business can be seen in its .&#10;A)trading characteristics&#10;B)ethical dimensions&#10;C)personal aspects&#10;D)legal guidelines

Accepted Answer

The economic character of business is primarily reflected in its trading characteristics, such as buying and selling goods and services for profit. Ethical dimensions, personal aspects, and legal guidelines are also important aspects of business but are not exclusive to its economic character.

Question 5

What fact does the &#34;ultimatum bargaining game&#34; demonstrate?&#10;A)It is often rational to price products below their market value.&#10;B)Free markets will usually self-regulate.&#10;C)Many people do not understand economics.&#10;D)Many people would rather not trade than be treated unfairly.

Accepted Answer

The ultimatum bargaining game demonstrates that many people would rather not trade than be treated unfairly. In this game, one player (the proposer) is given a sum of money and must propose a division of the money with another player (the responder). If the responder accepts the proposal, the money is divided according to the proposal. If the responder rejects the proposal, neither player receives any money. The game demonstrates that responders will often reject proposals that they perceive as unfair, even though it means receiving no money at all. This suggests that people value fairness and are willing to forego economic gain in order to avoid being treated unfairly.

Question 6

In many cases,rules of business ethics can be determined by .&#10;A)applicable laws&#10;B)company guidelines&#10;C)economic requirements&#10;D)rules of conduct that apply in everyday life

Accepted Answer

The answer of In many cases,rules of business ethics can...

Question 7

Organization in business is characterized mainly by its .&#10;A)rules&#10;B)hierarchy&#10;C)profits&#10;D)products

Accepted Answer

Organization in business is mainly characterized by its hierarchy, which refers to the levels of authority and responsibility within the company. This includes the chain of command, decision-making processes, and communication channels between different levels of employees. Rules, profits, and products are important aspects of a business, but they are not the defining characteristics of its organization.

Question 8

Adam Smith's economic theory is based on which of the following assumptions?&#10;A)People want to promote each others' interests.&#10;B)Morality is not relevant to economic concerns.&#10;C)Free markets will fix their own ethical problems.&#10;D)People will behave rationally as they pursue their interests.

Accepted Answer

Adam Smith's economic theory is based on the assumption that people will behave rationally as they pursue their interests. This is known as the "invisible hand" of the market, where individual self-interest and competition result in the best outcome for society as a whole. Smith did not address morality directly in his economic theory, but it can be argued that his belief in the power of self-interest to drive economic growth and prosperity implies that moral behavior is not necessary for economic success. However, this does not mean that morality is irrelevant to economic concerns as a whole.

Question 9

Decision making in business occurs at various distinctive .&#10;A)places&#10;B)levels&#10;C)objectives&#10;D)profits

Accepted Answer

Decision making in business occurs at various levels such as top management, middle management, and operational management. These levels may have different objectives and responsibilities, but they all contribute to the overall success and profitability of the organization. While decision making may also occur at specific places or for specific profit objectives, the most comprehensive and accurate answer is B: levels.

Question 10

The school of thought that says that law and ethics govern two different realms is wrong because&#10;A)ethics applies to every field of life&#10;B)anything that is legal is also ethical&#10;C)anything that is illegal is also unethical&#10;D)the law governs every aspect of life

Accepted Answer

Ethics is a universal concept that applies to all areas of life, including business, healthcare, education, and personal relationships. While the law provides a framework for what is permissible and punishable in society, it does not encompass all ethical considerations. There are many actions that may be legal but still unethical. Conversely, there may be situations where doing the right thing requires breaking the law. Therefore, it is important to recognize that law and ethics are related but distinct concepts that operate in separate domains.

Deck 1: Ethics in the World of Business