Alan Is a Retired Economist Who Enjoys Building Toy Trains

question 28

Multiple Choice

Alan is a retired economist who enjoys building toy trains for his grandkids.He uses a workbench and tools from his garage,lumber he bought from the lumber store for $10,and varnish and paint he had left over from another project last year.Since a retired economist is always an economist,which of the following statements does he make about building toy trains?

• A) I'm not paying for any resources,so the toy trains I'm building are a good example of free goods.
• B)I only paid $10 for the lumber,so the toy trains I'm building are a good example of free goods.
• C)I'm using scarce resources to build the toy trains.
• D)The resources I'm using to build the toy trains are not scarce.
• E)If I had used lumber that I cut from the tree in my backyard instead of buying it from the store,then the toy trains I'm building would be a good example of free goods.

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Definitions:

Discretionary Responsibility

The expectation for companies or individuals to make ethical decisions and contribute to societal well-being, beyond their economic and legal obligations.

Ethical Responsibility

The obligation to act in a manner that is morally correct, considering the welfare and rights of others and the larger community.

Ethical Behaviour

Acting in ways consistent with what society and individuals typically think are good values.

Ethical Standards

Codes of practice and morality that guide the behavior and decision-making of individuals and organizations.