In the Boxed Material "Making Ethical Decisions," the Textbook Describes

question 262

Multiple Choice

In the boxed material "Making Ethical Decisions," the textbook describes corruption practices in nations such as Mexico and the United States. These practices include payoffs to government officials in order to get an edge on competing better in one's industry. Which of the following statements best describes the ethical message of this boxed material?

• A)Bribery is commonplace and necessary in socialistic nations.
• B)Bribery is acceptable if everyone is doing it. As a business person, you have to find the right balance in whatever nation you want to sell your products.
• C)Campaign contributions are not considered bribes, particularly if everyone in your industry is doing the same.
• D)Ethics plays an important role in a capitalistic system and the freedom to compete.

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Definitions:

Consumer Surplus

It is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Market Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Producer Surplus

The difference between the amount a producer is willing to accept for a product versus what they actually receive.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.