Which of the Following Statements Is True of Behavior in the Context

question 21

Multiple Choice

Which of the following statements is true of behavior in the context of behavioral ethics experiments?

• A) The lower the cost (moral or otherwise) of acting ethically, the less likely is ethical behavior.
• B) Greater social distance increases the cost of acting ethically and decreases the likelihood of ethical behavior.
• C) Socialization through the sharing of information about how others behave can weaken a reciprocity norm.
• D) Relational contracts enforced through two-sided reciprocity cannot be beneficial.

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Definitions:

Compounded Monthly

The process of earning interest on both the original deposit and the accumulated interest from previous periods, calculated on a monthly basis.

Trust Fund

A legal arrangement in which assets are held by a third party for the benefit of another party or parties.

Compounded Quarterly

A financial term meaning the interest earned on an investment is calculated and added to the principal every three months, leading to the interest earning interest in subsequent quarters.

Monthly Payments

Regular amounts paid every month, usually in the context of loans or subscriptions.