The US Sentencing Guidelines Use a "Carrot and Stick" Approach

question 27

Multiple Choice

The US Sentencing Guidelines use a "carrot and stick" approach to managing corporate crime. What is meant by the use of "carrot" and "stick"?

• A) The carrot dangles at the end of the stick as an incentive for organizations to continue to behave ethically.
• B) The carrot refers to the guidelines as "food for thought" and the stick refers to the punishment if the guidelines are not followed.
• C) The carrot refers to incentives in the guidelines to behave ethically and the stick refers to the punishment if the guidelines are not followed.
• D) None of the above.

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Definitions:

GDP Deflator

A gauge for pricing of all new, native-produced, conclusive goods and services within an economy, applied to revise nominal GDP in order to compute real GDP.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country in a specific period in real terms.

Percentage Change

A mathematical calculation that determines the degree of change over time as a proportion of the original value, often used to measure growth or decline in economic data.

Real GDP

The calculation of a nation's economic production accounting for variations in prices, representing the actual value of all goods and services generated.