Questions and Answers
What is ethics in the context of decision making?
Ethics is a part of decision making at all levels of work and management.
How can ethical decisions occur?
Ethical decisions occur when accepted rules no longer serve and decision makers must weigh values and reach a judgment.
Morals refer to a person's personal philosophies about what is right or _____.
wrong
Which of the following are considered observed misconduct in the workplace? (Select all that apply)
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Having good individual morals is enough to stop ethical misconduct.
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What role do ethics training play in organizations?
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What is the definition of economics?
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What are the two subsections of economics?
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Economics is derived from the Greek word 'Oikonomos', which means 'one who manages a ______'.
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Which of the following branches of economics studies the behavior of the whole economy?
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Who is considered the 'Father of Modern Economics'?
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Microeconomics is concerned with the behavior of individual consumers and firms.
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Macroeconomics deals only with individual behaviors.
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What concept did Adam Smith introduce to describe the forces that move a free market economy?
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What did Thomas Malthus predict about population and resources?
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Match the following economists to their contributions:
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What is the importance of microeconomics?
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Study Notes
Overview of Business Ethics
- Ethics influences decision-making across all work and management levels.
- Ethical practices are assessed through questions of acceptability; no universally accepted solutions exist for ethical dilemmas.
Definition of Business Ethics
- Business ethics encompasses organizational principles, values, and norms stemming from individuals, company policies, or legal frameworks.
- Ethical decisions arise when conventional rules are inadequate, prompting the evaluation of values and judgments that influence choices.
Key Concepts in Ethics
- Morals: Personal beliefs about right and wrong that vary by individual.
- Principles: Broad guidelines for acceptable behavior, including human rights, free speech, and justice.
- Values: Shared beliefs and ideals enforced socially, emphasizing teamwork, integrity, and trust.
Common Workplace Misconduct
- Misuse of company resources
- Abusive behavior
- Harassment
- Accounting fraud
- Conflicts of interest
- Defective products
- Bribery
- Employee theft
Importance of Studying Business Ethics
- Individual morals alone do not prevent ethical violations in organizations.
- Ethics training promotes common understanding within diverse workplaces.
- Ethical decision-making can be complex and requires careful consideration.
Definition and Scope of Economics
- Derived from the Greek “Oikonomos,” meaning “one who manages a household.”
- Economics studies how society manages scarce resources to fulfill unlimited wants.
- Focuses on converting limited resources into goods and services and distributing them.
Branches of Economics
- Divided into Microeconomics and Macroeconomics.
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Microeconomics: Studies individual consumer, firm, and family behavior.
- Tools include demand and supply.
- Covers issues like product consumption and welfare.
- Importance in pricing products and factors of production: land, labor, entrepreneurship, capital.
- Limitations: Based on unrealistic assumptions leading to untestable theories.
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Macroeconomics: Analyzes the whole economy at national and international levels.
- Tools include aggregate demand and supply.
- Addresses national income, price levels, employment issues.
- Crucial for maintaining economic stability and addressing inflation and poverty.
- Limitations: Aggregate truths may not apply to individuals.
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Microeconomics: Studies individual consumer, firm, and family behavior.
Historical Context of Economics
- Civilization demonstrated financial concepts in the Middle East and China.
- 8th Century BCE: Hesiod wrote "Work and Days" on farm management.
- Xenophon: Authored "Oikonomikon," focused on estate management.
- Aristotle: Expanded on economic theories in "Politics."
- 14th Century: Ibn Khaldun analyzed labor and international trade in "Al-Muqaddimah."
- 1776: Adam Smith published "An Inquiry into the Nature and Causes of the Wealth of Nations," regarded as modern economics’ foundation; introduced the “Invisible Hand.”
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19th Century:
- Malthus predicted resource scarcity against population growth.
- Marx promoted the idea of equal distribution (communism).
- Mid-19th Century: Jevons, Menger, and Walras contributed new economic perspectives.
- 20th Century: Economic crises led to the rise of Keynesian Economics, developed by John Maynard Keynes, advocating government intervention in the economy.
Key Economic Principles (Microeconomics)
- Decision-making involves trade-offs; cannot obtain everything desired.
- Cost of a choice reflects the opportunity lost for alternatives.
- Rational decision-making occurs at the margin for maximal benefits.
- Incentives influence behavior; people act for compensation, not for free.
Macroeconomic Interactions
- Trade can enhance welfare for all parties involved.
- Markets are effective in organizing economic activities, both in physical and virtual spaces.
- Governments may facilitate market outcomes, improving trade efficiency and addressing market failures.
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Description
This quiz covers the fundamental concepts presented in Chapter 1 of Business Ethics. Explore important definitions, principles, and the significance of ethics in the business world. Test your understanding of ethical frameworks and their applications in real-world scenarios.
