The Set of Rules That a Manager Can Use to Make

question 19

Multiple Choice

The set of rules that a manager can use to make decisions that have both good and bad consequences is the basis of the:

• A) might-equals-right ethic.
• B) ends-means ethic.
• C) proportionality ethic.
• D) utilitarian ethic.

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Definitions:

Interest Rate

is the cost of borrowing money or the return for investing, usually expressed as a percentage of the principal over a one-year period.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, positing that consumption patterns are directly related to income levels.

Price Level

A measure of the average prices of goods and services throughout the economy, indicating the cost of living or inflation rate.

Net Wealth

The total value of all financial and non-financial assets owned by an individual, company, or country, minus any debts.