Which of the Following Statements About Ethics Is True

question 118

Multiple Choice

Which of the following statements about ethics is true?

• A) Acting ethically is always easier than any other form of action.
• B) Employees assume no risk when they conduct themselves ethically.
• C) Ethics can be specifically defined, like other laws.
• D) If an act is legal, it must by definition be ethical.
• E) Ethics is the set of moral principles or values that defines right and wrong for a person or group.

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Definitions:

Utility Function

A mathematical representation used in economics to model the preference or satisfaction a consumer derives from consuming goods and services.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another.

Income Effect

The change in an individual's or market's consumption resulting from a change in real income.

Inferior Good

A type of good for which demand decreases as the income of consumers increases.