Viaduct Corporation Used Untested and Risky Construction Techniques to Build

question 16

Multiple Choice

Viaduct Corporation used untested and risky construction techniques to build a bridge under budget. The techniques were legal but the bridge collapsed, killing several people. Viaduct's actions were

• A) unethical and may result in legislation to ensure it does not happen again.
• B) ethical because they were legal and so Viaduct owes no one.
• C) dangerous and so inherently illegal.
• D) legal under Sarbanes-Oxley and so Viaduct will face no penalties.

---

Definitions:

Supply Decreases

A reduction in the quantity of a good or service that producers are willing to sell at a given price, often resulting in higher prices.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity demanded equals the quantity supplied.

Rent Ceiling

A government-imposed limit on how high rents can go, aimed at keeping housing affordable.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the additional value created by the firm beyond that required to compensate its resource suppliers.