Many Economists Argue That There Are Ethical Ideas Behind Economic

question 152

Multiple Choice

Many economists argue that there are ethical ideas behind economic reasoning because:

• A) economic reasoning does not second-guess people's preferences, and by extension respects people's choices.
• B) economic reasoning is normative in nature.
• C) economists include a value for welfare in all economic calculations.
• D) economic markets only support those exchanges that are considered fair and equal.

---

Definitions:

Self-Interest

A principle that assumes individuals make decisions that they perceive to be in their own best advantage, often equated with rational behavior.

Investment

The allocation of resources, such as capital or time, in expectation of future returns, typically in the form of profit, interest, or appreciation in value.

Stocks and Bonds

Financial instruments representing ownership in a company (stocks) and debt obligations issued by entities (bonds), respectively, used for investment purposes.

Private Enterprise

Private enterprise is a business or industry that is managed and owned by private individuals or companies rather than by the state.