Module 2- Ethics and Capitalism

Question 1

What are the 8 elements of the theory of capitalism?

Answer 1

• Right of private property
• Equality of opportunity
• Competition
• Individualism and economic freedom
• Profits
• Work ethic
• Consumer sovereignty
• Role of government

Question 2

Which of the following is an ethical consideration associated with the right of private property?

A. The extent to which government can restrict the right for the common good
B. Whether all individuals should be treated the same or if some individuals or groups need assistance
C. Whether CEO pay should be capped at a certain level or multiple of the lowest-paid worker
D. Whether products are designed to break down quickly, forcing consumers to spend more money than they should
E. Whether the government should own and operate businesses like utilities or transportation systems

Answer 2

A. The extent to which government can restrict the right for the common good

Question 3

Which ethical principle is most likely to be used in a compliance-based approach to corporate ethics?

A. Rights
B. Justice
C. Utilitarian
D. Caring
E. Virtue

Answer 3

A. Rights

Question 4

Which of the 8 elements of the theory of capitalism:

The legal right to own and use economic goods, for example land and buildings.

Answer 4

The right of private property

Question 5

Which of the 8 elements of the theory of capitalism:

• The individual, and not society or a collective, is paramount decision maker in society
• Assumes that individual is inherently decent and rational
• BLANK → exist when the business system operates with few restrictions on its activities

Answer 5

• Individualism and economic freedom
• Economic freedom

Question 6

Which of the 8 elements of the theory of capitalism:

Condition in a market system in which many rival sellers
seek to provide goods and services to many buyers

Answer 6

Competition

Question 7

Which of the 8 elements of the theory of capitalism:

Assumption that all individuals or groups have an even
chance at responding to some condition in society.

Answer 7

Equality of opportunity

Question 8

Which of the 8 elements of the theory of capitalism:

• Excess of revenues over expenses; closely associated
  with competition
• Corporations compete for BLANK

Answer 8

Profits

Question 9

Which of the 8 elements of the theory of capitalism:

Consumers have and exercise power over producers
through the decisions they make in purchasing the goods
and services provided by corporations

Answer 9

Consumer sovereignty

Question 10

What is capitalism?

Answer 10

Economic system that allows for private ownership of the means of production

Question 11

Which of the 8 elements of the theory of capitalism:

A code of values, or a body of moral principles, claiming
that work is desirable, a natural activity, and good in
and of itself

Answer 11

Work ethic