Chris Was Developing His Divisional Budget for the Upcoming Fiscal

question 46

Multiple Choice

Chris was developing his divisional budget for the upcoming fiscal year. He was fairly confident his total expenses would be $40,000 and his total revenue $60,000; but, in the budget, he understated his revenue and overstated his expenses to make it easier to achieve his goals.
-Chris felt his base pay was too low. By manipulating his budget as he did, his year-end bonus would be higher. Chris was following the ___ model of ethics.

• A) Virtues.
• B) Utilitarianism.
• C) Rights and duties.
• D) Justice.

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Definitions:

Neoclassical Economics

A mainstream approach to economics that focuses on the determination of goods, outputs, and income distributions in markets through supply and demand.

Behavioral Economics

A field of economics that analyzes the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions.

Impulse Buying

A spontaneous, unplanned decision to buy a product or service, typically made right before a purchase.

Neoclassical Theory

An economic theory that focuses on how the perception of utility and costs influences supply and demand in markets, leading to an equilibrium.