Managers of Corporations Need to Act in an Ethical Manner

question 21

Multiple Choice

Managers of corporations need to act in an ethical manner

• A) because ethics violations will be punished by the law.
• B) because a business must be trusted by investors, customer and the public if it is to succeed.
• C) because business managers must answer to a higher authority.
• D) because ethical behavior is its own justification.

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Definitions:

Substitution Effect

The change in consumption resulting from a change in relative prices, leading consumers to substitute away from higher-priced goods towards lower-priced ones.

Price Change

An alteration in the cost to purchasers of goods and services over time or in response to supply and demand conditions.

Total Utility

The total satisfaction a consumer gets from consuming a certain quantity of goods or services.

Demand Curves

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.