8 April 2014

Ethics: Study Guide 1

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Chapter 1
Definition of ethics and moral standards (5 Questions)
1. Ethics: A
2. Moral Standards: E
3. Ethics: A
ethics describes a generally accepted set of moral principles
morals describes the goodness or badness or right or wrong of
actions
values describes individual or personal standards of what is
valuable or important.
In business ethics, what are the three basic types of issues
4. Business Ethics 3 Types of Issues: B
Ethical Relativism
5. Ethical Relativism: A
Stages of moral development
6. Kholbergs Stages of moral development: B
Criteria of moral reasoning
7. Moral Reasoning: d (look for to evaluate logical, incomplete and
consistent)
Societys needs versus wants
8. Normative Judgment: F
Advancing the employees self interests
9. Loyal Agent: T
Prisoners Dilemma
10. Prisoners Dilemma: F
Enrons Fall (Page 53-55)
11. Enron: T
12. Enron Stock: F
Chapter 2
Utilitarianism
13. Utilitarianism: T (characterize)
14. Utilitarianism: F (few men lost)
16. Utilitarianism Attractive: T
What is the moral thing to do. (3 Things)
15. Considerations: all of them or all of the above
Cost Benefit Analysis
17. Cost benefit analysis: T (factory economic costs)
Intensive Goods
9. Intrinsic Goods: things that are desirable independent of any other
benefits they may produce.
Rule Utilitarianism
20. Rule Utilitarianism: T
--------Duties others have not to interfere with you
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8 April 2014

Ethics: Study Guide 1

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---------Kants categorical imperative

22. Categorical Imperative: Immanuel Kant (not sure T)
The philosophical concept of a categorical imperative is central to the
moral philosophy of Immanuel Kant.. In his philosophy, it denotes an
absolute, unconditional requirement that allows no exceptions, and is
both required and justified as an end in itself, not as a means to some
other end; the opposite of a hypothetical imperative. Most famously,
he holds that all categorical imperatives can be derived from a single
one, which is known as "the" Categorical Imperative; it is upon this
Imperative that the article will focus.
Unocal Case (Page 119-122)
23. Unocal forced Labor: T
24. Unocal Pipeline Citizens: F
Chapter 3
John Loche Power of government, labor
25. John Locke: C
26. John Locke influence on U.S.: T
Adam Smith Free Markets
27. Adam Smith: T
28. Adam Smith invisible Hand: T
Smith People free to seek their own interests
29. Adam Smith Utilitarian Argument: D
Social Darwinists Survival of the fittest
30. Darwin competition: F
31. Darwin survival of the fittest: Charles Darwins term for the
process of natural selection.
Karl Marx and his theory
32. Marx Extremes of inequality: or (look for connected to extreme
of inequality
Define mixed economy (4 Examples)
33. Mixed Economy: C (answer is Mixed Economy)
Aids in Africa (Pages 158-161)
34. Drug Cocktails HIV: T
35. Zimbabwe rate of HIV infection: T or 34%
36. Zimbabwe rank of HIV: F or (ratio 1:4)
Chapter 4
Buyer and Seller in a free market
37. Free Competitive Market: T
Characteristics of a perfectly free economy
38. Characteristics of perfectly Competitive Free Economy: The
following seven features characterize
perfectly competitive free markets:
1. There are numerous buyers and sellers, none of whom has a
substantial share of the market.
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8 April 2014

Ethics: Study Guide 1

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2. All buyers and sellers can freely and immediately enter or leave the
market.
3. Every buyer and seller has full and perfect knowledge of what every
other buyer and seller is
doing, including knowledge of the prices, quantities, and quality of
goods being bought or sold.
4. The goods being sold in the market are so similar to each other that
no one cares from whom
each buys or sells.
5. The cost and benefit of producing or using the goods being
exchanged are borne entirely by
those buying or selling the goods and not by any other external
parties.
6. All buyers and sellers are utility maximizers: tries to get as much as
possible for as little as
possible.
7. No external parties (such as the government) regulate the price,
quantity or quality of any
goods being bought and sold in the market.

Utility maximize
39. Utility Maximizer: T
------Diminishing marginal utility
40. Diminishing Marginal Utility: Each additional item a person
consumes is less satisfying than each of
the earlier items the person consumed. (I think the answer is C )
Efficiency in a free market
41. Efficiency:
1. Firms are motivated to invest resources in industries with a high
consumer demand and
move away from industries where demand is low.
2. Firms are encouraged firms to minimize the resources they consume
to produce a commodity and to use
the most efficient technologies.
3. Commodities are distributed among buyers such that buyers receive
the most satisfying commodities
they can purchase, given what is available to them and the amount
they have to spend. (I think the answer is D)
Monopoly
42. Monopoly: F
43. Monopoly- Unjust: (I think the answer is A)
Price fixing
44. Price- Fixing: When companies agree to set prices artificially high. (I
think the answer is A)
Tying arrangement
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Ethics: Study Guide 1

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45. Tying Arrangement: When a company sells a buyer certain goods

only on condition that the buyer
also purchases other goods from the firm.
Anti-trust view
46. Antitrust- Break up large Corporations: T
Microsoft (Pages 194-199)
47. Microsoft-Monopoly: F
48. Microsoft- Stock: T
Chapter 5
Pollution
49. Environmental Damage: population growth, rising temperature,
falling water tables, shrinking
cropland per person, collapsing fisheries, shirking forests, and the loss
of plant and animal species.
50. Pollution: T

Resource depletion
51. Resource Depletion: The consumption of finite or scarce resources
CFC in the atmosphere
52. Ozone Depletion: The gradual breakdown of ozone gas in the
stratosphere above us caused by the
release of chlorofluorocarbons (CFCs) into the air.
Acid rain
53. Acid Rain and Fossil Fuels: Occurs when sulfur oxides and nitrogen
oxides are combined with water
vapor in clouds to from nitric acid and sulfuric acid. These acids are
then carried down in rainfall.
Deep ecology
54. Ecological Ethics or Deep Ecology: The view that nonhuman parts
of the environment deserve to be
preserved for their own sake, regardless of whether this benefits
human beings.
55. Views of Deep Ecology: T
Conservation
56. Conservation: The Saving or rationing of natural resources for late
uses (I think the answer is D)
-----Needs of future generations/prices
-----Ok Tedi Copper Mine (Pages 250-254)
------Gas or Grouse (Pages 254-257)
Chapter 6
Consumers place high value on safety
Seven characteristics of a perfectly free economy
Rational Utility Maximizer
People, statistics & probability
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8 April 2014

Ethics: Study Guide 1

Business force main moral duties

Due Care Theory
Criterion of Advertising
Manipulation in advertising
Physical and psychological privacy
Ford and Firestone (Page 296-299)
Chapter 7
Elements of documentation in hiring
Discrimination Intentional and institutionalized
Indications of discrimination
Comparison to provide evidence of discrimination
Arguments against discrimination
Utilitarians argument for discrimination
Kant and discrimination
Rawlo and discrimination
Discriminating practices
Affirmative Action
Comparable worth
Kroger/Misiolek (Page 341-343)
Chapter 8
Rational model of the business organization
Organizational chart
Law of agency
Conflict of interest
Firms main moral duties to employees
Employees and Risks
Employees rights to privacy
Whistle blowing
Made in America Labels
Chinese workers

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