Thomas LCarlson Argues That There Are Four Rules That Must Be

question 38

Short Answer

Thomas L.Carlson argues that there are four rules that must be followed for a sale to be ethical.What are they,and what objections can be raised against them?

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Definitions:

Lottery

A form of gambling involving the drawing of numbers at random for a prize, often run by state or federal governments.

Risk Aversion

A preference for avoiding risk, where individuals or organizations opt for lower-risk options even when higher risks may offer greater potential rewards.

Adverse Selection

Refers to the fact that “bad types” are likely to be selected in transactions where one party is better informed than the other. Examples include higher risk individuals being more likely to purchase insurance, more low-quality cars (lemons) being offered for sale, or lazy workers being more likely to accept job offers. Adverse selection is a precontractual problem that arises from hidden information about risks, quality, or character.

Insurance

A financial product offering protection against the potential financial loss or liability resulting from specific events or circumstances, in exchange for a premium payment.