PHI 445 WEEK 4 QUIZ GRADED A VERIFIED

1. Question : Classical free-market economists argue that spending decisions should be made by: Student Answer: the person in consultation with his or her priest. the person in consultation with his parents and/or children. the person in consultation with the government. the person without consulting anyone. Instructor Explanation: The answer can be found in Chapter 10, Investments, in Introduction to Business Ethics. Points Received: 1 of 1 Comments: Question 2. Question : One objection some environmentalists have made against genetically modified foods is: Student Answer: genetically modified foods are more difficult to harvest. genetically modified foods threaten biodiversity. genetically modified foods increase rodent populations. genetically modified foods are difficult to cook with. Instructor Explanation: The answer can be found in Chapter 10, Investments, in Introduction to Business Ethics. Points Received: 1 of 1 Comments: Question 3. Question : During an economic recession, Gail plays the lottery and wins a million dollars. Rather than investing or spending this money, she decides to save it all. An economist who would insist that Gail would be acting in a way that would be more helpful economically by spending this money would be: Student Answer: Adam N. Smith. George R. Stigler. John M. Keynes. David A. Ricardo. Instructor Explanation: The answer can be found in Chapter 10, Investments, in Introduction to Business Ethics. Points Received: 0 of 1 Comments: Question 4. Question : Barry inherits a great deal of money from his grandfather. He decides to hold on to it all, rather than investing it. Barry's behavior might be described as: Student Answer: hoarding. shorting. leveraging. divesting. Instructor Explanation: The answer can be found in Chapter 10, Investments, in Introduction to Business Ethics. Points Received: 0 of 1 Comments: Question 5. Question : Advocates of genetically modified foods support them because: Student Answer: genetically modified foods threaten biodiversity. genetically modified foods taste better. genetically modified foods cross-contaminate other foods. genetically modified foods have improved pest resistance. Instructor Explanation: The answer can be found in Chapter 10, Investments, in Introduction to Business Ethics. Points Received: 1 of 1 Comments: Question 6. Question : Adam Smith argues that acting in one's own interest or acting in a self-interested way: Student Answer: leads to socially destructive behavior. promotes the social good. interferes with good investment decisions. prevents debt from being efficiently leveraged. Instructor Explanation: The answer can be found in Chapter 10, Investments, in Introduction to Business Ethics. Points Received: 0 of 1 Comments: Question 7. Question : Which of these might be considered a social cost of a company that pollutes excessively? Student Answer: Stockholder value inevitably goes up Increased rates of disease Increased rates of debt Decreases tax base Instructor Explanation: The answer can be found in Chapter 9, Environmental Issues, in Introduction to Business Ethics. Points Received: 0 of 1 Comments: Question 8. Question : A supporter of free markets might suggest that the most efficient strategy to minimize pollution is: Student Answer: class warfare. central government planning. market socialism. property rights and market mechanisms. Instructor Explanation: The answer can be found in Chapter 9, Environmental Issues, in Introduction to Business Ethics. Points Received: 0 of 1 Comments: Question 9. Question : Company A pollutes 50% of what is allowed, while Company B pollutes 125% of what it is allowed. Company B purchases from Company A some of its "right" to pollute. This would be an example of: Student Answer: cap and ball. cap and gown. cap and distribute. cap and trade. Instructor Explanation: The answer can be found in Chapter 9, Environmental Issues, in Introduction to Business Ethics. Points Received: 1 of 1 Comments: Question 10. Question : Classical, free-market economists, consider hoarding a/an: Student Answer: Demand of socially responsible investing. Personal decision on the part of an investor. Part of a well-balanced hedge fund. Excellent way to avoid confiscatory taxes. Instructor Explanation: The answer can be found in Chapter 10, Investments, in Introduction to Business Ethics.