There Has Been a Public Outcry About the Ethical Practices

question 208

Multiple Choice

There has been a public outcry about the ethical practices of businesspeople. Public opinion surveys show that only 17 percent of U.S. adults rate the ethical standards of business executives as

• A)outstanding.
• B)above average.
• C)similar to other professions.
• D)typical of businesspeople around the world.
• E)very high or high.

Grasp the Coase theorem and its application to solving externalities.

Understand the law of diminishing marginal utility and its impact on marginal benefit curves.

Recognize the effects of externalities on resource allocation and how government interventions like Pigovian taxes and cap-and-trade can address these issues.

Understand the principles of adverse selection and moral hazard in the context of insurance markets.

---

Definitions:

Flexible

Capable of adapting to changes and new conditions in a thoughtful and efficient manner.

Span of Control

The number of individuals that a manager or supervisor is directly responsible for overseeing in an organizational structure.

Supervisory Direction

Guidance and oversight provided by supervisors to ensure tasks and activities are completed according to organizational standards.

Assembly Plant

A manufacturing facility where various components of a product are put together to form a final product.