When a Professor Announces to the Class That She Will

question 108

Multiple Choice

When a professor announces to the class that she will grade on a curve and that no one in the class will receive a grade lower than a "C"

• A)a moral hazard problem for her students will likely arise.
• B)an adverse selection problem for her students will likely arise.
• C)the marginal social benefit will exceed the marginal social cost.
• D)the marginal social cost will exceed the marginal social benefit.

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Definitions:

Deontological

Pertaining to an ethical theory that suggests the morality of an action should be based on whether the action itself is right or wrong under a series of rules, rather than based on the consequences of the action.

Utilitarian

Pertaining to the ethical theory that the best action is the one that maximizes utility, generally defined as that which produces the greatest well-being of the greatest number of people.

Amoral

Lacking a moral sense; unconcerned with the rightness or wrongness of something.

Autonomous

Having the freedom to act independently, making decisions and actions based on one's own authority and principles.