Which of the Following Is Most Likely to Be Considered

question 2

Multiple Choice

Which of the following is most likely to be considered as unethical?

• A) Galaxy Inc. ceased its operations in some developing nations on the account that those countries had low employment standards.
• B) Unicorn Inc. sells its medicines at a lower price in less developed nations.
• C) Capricorn Inc., a multinational company operating in developing nations, pays its labor 30 percent more than what the local competitors pay.
• D) Centaur Inc. had to close down a production plant as the local management there had employed child labor.
• E) Orion Inc. sends its products for recycling to a developing nation because the pollution control laws in its home country are much more strict than that in the developing nation.

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Definitions:

Framing

The way information is presented to influence decision-making and judgment.

Simplifying Assumptions

Basic conditions that modelers set to make complex economic analyses more manageable and understandable.

Rationality

The quality of being based on or in accordance with reason or logic; often involves making decisions that are optimal based on available information.

Neoclassical Economic Models

These models are based on the assumptions of rational behavior and efficient markets, focusing on how supply and demand determine prices and allocate resources.