Ethics and Moral Decision-Making Quiz

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Questions and Answers

Which ethical decision-making stage is characterized by acting based on self-chosen abstract principles?

Pre-conventional

Unconventional

Post-conventional (correct)

Conventional

What does the 'separability thesis' primarily suggest about the relationship between material interests and moral sentiments?

They are intertwined within every business decision.

They have independent and additive effects on behavior. (correct)

Material interests dominate moral sentiments in market behavior.

They are interactive and constantly influence each other.

Which of the following is NOT considered a situational factor affecting ethical behavior, based on the provided information?

Corporate culture

National culture

Internal moral awareness (correct)

Reward and incentive schemes

What is meant by the term 'moral muteness' in the context of corporate culture?

The lack of expressing moral concerns or ethical issues. (D) Signup and view all the answers

According to Sandel, which of the following is a primary concern regarding the application of market logic?

It erodes the intrinsic value of certain things. (A) Signup and view all the answers

Which of the following best describes adverse selection?

An attempt by one party to exploit an information advantage before a transaction. (C) Signup and view all the answers

What key flaw is pointed out with hedonistic utilitarianism?

It may justify questionable or harmful pleasures. (C) Signup and view all the answers

What is a key difference between adverse selection and moral hazard?

Adverse selection involves one party exploiting information, while moral hazard is a change in behavior due to risk protection. (A) Signup and view all the answers

Which concept refers to the idea of intentionally avoiding information about the negative consequences of one's self-serving decisions?

Willful ignorance (B) Signup and view all the answers

Bowles argues that policies designed to harness self-interest can be counterproductive because:

They overlook the possibility that economic incentives will diminish ethical reasons. (D) Signup and view all the answers

According to the 'non-separability thesis', how should business decisions be viewed in relation to ethics?

Every business decision is also an ethical decision. (B) Signup and view all the answers

According to the content, what is a key reason why counterproductive incentives are common?

They might give the principal a bigger share, even if they decrease overall outcome. (D) Signup and view all the answers

In the Falk & Szech experiment, what was the key finding regarding markets and morals?

Markets can erode moral values by making people more willing to accept negative consequences for others. (A) Signup and view all the answers

Which ethical approach emphasizes maximizing overall welfare or happiness?

Utilitarianism (A) Signup and view all the answers

What does duty-based ethics (deontology) primarily focus on?

People's ability to reason and categorical imperatives. (D) Signup and view all the answers

According to the content, what does virtue ethics primarily emphasize?

The moral character of the person (D) Signup and view all the answers

According to the provided content, which of the following BEST characterizes the concept of 'scarcity'?

A state of shortage that shifts attention to immediate issues. (D) Signup and view all the answers

According to the content, what is a key problem identified by Freeman et al.'s stakeholder theory?

The separation of organizational actions from their stakeholders. (D) Signup and view all the answers

According to the provided information, which of these options represents a PRIMARY stakeholder for an organization?

Employees and customers of the organization (B) Signup and view all the answers

Which of the following MOST accurately reflects the concept of 'proportional thinking' within the text?

High-income individuals value money less than low-income individuals. (B) Signup and view all the answers

What is a potential NEGATIVE consequence of using a piece rate pay system?

A tendency to focus on quantity at the expense of quality. (B) Signup and view all the answers

According to the content, how does 'tournament theory' reduce risk?

By reducing environmental risk, such as market fluctuations. (D) Signup and view all the answers

What does the 'decoy effect' suggest about decision-making, according to the text?

Introducing a worse option can sometimes influence people's choices. (D) Signup and view all the answers

According to the provided content, what is the main idea behind 'shaking stakeholders'?

Proactively initiating cooperation and awareness among stakeholders. (C) Signup and view all the answers

According to John Rawls' Theory of Justice, what is the primary goal of a just society?

Maximizing benefits for the most disadvantaged group. (D) Signup and view all the answers

What is a key criticism of utilitarianism, as discussed in the text?

It may neglect the rights and well-being of minority groups. (D) Signup and view all the answers

According to Nozick’s Entitlement Theory, a distribution of wealth is considered just if:

It is based on morally justified initial holdings and voluntary transfers. (A) Signup and view all the answers

What does Jonathan Wight's concept of 'horizontal pluralism' in ethics emphasize?

The recognition of diverse perspectives (actor, action, outcome) in ethical decision-making. (D) Signup and view all the answers

Which of the following best describes 'vertical pluralism' in the context of ethical frameworks?

The variations within a single ethical tradition or system. (A) Signup and view all the answers

According to Friedman's view, what is the primary responsibility of managers in a company?

To maximize profits for the company's shareholders. (B) Signup and view all the answers

What is a key consideration when categorizing workers in the 'grey area' between employment and one-time service?

Whether the work is done full-time or part-time. (C) Signup and view all the answers

What is a key point highlighted by McPherson and Satz regarding labor markets?

There is often an imbalance in power and knowledge between parties in labor relations. (A) Signup and view all the answers

Which of the following is NOT a justification for a minimum wage?

To increase the overall productivity. (C) Signup and view all the answers

According to the content, what is the fundamental idea behind the argument that all unemployment is 'voluntary'?

People will not accept a very low wage, which leads to unemployment. (C) Signup and view all the answers

In the context of the 'Moral Machine Experiment,' what is a common prioritization observed in the provided text?

Younger individuals are typically valued over older ones. (D) Signup and view all the answers

Which of the following is a core idea of Nozick's entitlement theory?

Inequality is acceptable if the underlying transactions were just. (A) Signup and view all the answers

According to Shah et al., how does scarcity affect cognitive function?

Scarcity causes individuals to deeply engage with some problems while ignoring others. (B) Signup and view all the answers

Which of the following best describes the 'capability approach'?

A focus on what people are able to do and the lives they can achieve. (A) Signup and view all the answers

What does the 'effective freedom' concept in the capability approach primarily refer to?

The freedom from external hindrances as well as lack of resources (B) Signup and view all the answers

According to the provided material, what is a distinction between micro- and macro-scale applications of well-being according to the provided text?

Micro-scale approaches the concept of well-being subjectively, while macro-scale research often selects functionings deemed good for people. (B) Signup and view all the answers

Which concept describes a situation where one party in a transaction has more information than the other?

Asymmetric information (C) Signup and view all the answers

According to Bowles' argument, what is a potential issue with using self-interest based policies?

They may be counterproductive. (C) Signup and view all the answers

What was one of the main findings in Falk and Szech's experiment using mice?

Markets can erode moral values in certain settings. (B) Signup and view all the answers

Which of these ethical approaches focuses on the inherent rightness or wrongness of actions or duties, regardless of their consequences?

Duty ethics (B) Signup and view all the answers

What is the main idea behind the 'separability thesis', as proposed by Wight?

Ethical and economic considerations can often be analyzed separately from each other. (A) Signup and view all the answers

Which concept did McPherson and Satz use to describe the kind of jobs associated with app based jobs?

Gig economy (C) Signup and view all the answers

According to the Moral Machine Experiment, which option tends to be chosen as preferable in their ethical decision making?

Saving more lives is preferred over saving fewer. (A) Signup and view all the answers

According to Shah, Mullainathan, and Shafir, how does scarcity affect cognitive function?

Scarcity increases focus on tasks at hand while diminishing focus on other aspects. (B) Signup and view all the answers

Study Notes

Overview of Topics

The study notes cover various topics related to economics, ethics, and public policy. Different perspectives on market behavior and its impacts are analyzed, along with the role of ethics in market activity and decision-making. Notions of moral limits within markets, incentives, and the effects of different economic approaches are included.

Asymmetric Information

Adverse selection occurs before a transaction due to differing information levels, allowing one party to exploit their advantage. This is a market problem common with insurance and other transactions.
Asymmetric information after a transaction is called moral hazard, where one party's behavior changes due to being protected from the risks of their actions.

Policies and Self-Interest

Bowles argues that policies designed to harness self-interest can sometimes be counterproductive because economic incentives can reduce ethical considerations in decision-making, for example, parents being late for their children's pickups.
The classic approach to this assumes incentives and preferences are distinct, but in reality, incentives frequently undermine ethical motives.

Moral and Markets

Markets can negatively influence moral values; experiments suggest this occurs across individuals and within bilateral/multilateral settings.

Ethical Approaches to Corporate Sustainability

Utilitarianism aims to maximize overall welfare, but doesn’t always acknowledge individual rights.
Duty-based ethics emphasizes the inherent duties and principles, rather than just outcomes.

Motivation and Prices

Research shows that setting prices can sometimes reduce motivation in certain contexts.

Separability Thesis

The separability thesis argues that material interests and moral sentiments operate independently.
Bowles argued against the separability thesis.

Markets and Moral Limits

Key questions about markets' moral bounds discuss whether markets erode moral values and how to retain them.

Economic Approaches

Descriptive economics focuses on what is observed in market behavior.
Predictive economics forecasts future market behaviors.
Normative economics addresses optimal outcomes.

Ethical Systems

Virtue ethics emphasizes individual moral character and virtues.
Noxious markets involve weak agency and vulnerability leading to negative repercussions.
Different approaches to ethics including utilitarian, duty-based and virtue are discussed.

Well-being, Freedom, and Capability

The capability approach, proposed by Amartya Sen, focuses on the freedom and well-being of people, evaluating their potential capabilities to act within specific contexts.
Poverty and inequality are discussed with an emphasis on context.

Lecture Specifics

Several lectures (1-4) cover economic theories related to decision-making in markets and interactions between economic incentives and ethical behaviors, including the importance of incentives, the theory of justice, and economic rationality.

Nudges, Decision-Making, and Incentives

Research indicates that nudges can effectively influence behavior, but different contexts and experimental designs may result in different outcomes and impact.

Stakeholder Theory

Stakeholder theory argues that organizations are not isolated entities but interconnected with various stakeholders (those impacted by their activities).

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Description

Test your knowledge on ethical decision-making stages, situational factors affecting ethical behavior, and important concepts in ethics. This quiz also covers moral philosophies and their implications in corporate culture. Explore key ideas like adverse selection and hedonistic utilitarianism.