Q#1: The modern corporations consist of ________.
(A) None of the given
(B) Stock holders, Employees, Customers
(C) Stock holders, Employees, Directors
(D) Directors, Managers, Customers
Answer: (C) Stock holders, Employees, Directors
Q#2: Which one of the following is NOT the criterion employed by different ethicists to evaluate moral reasoning?
(A) Moral reasoning must be logical
(B) Factual evidence must be accurate, relevant, and complete
(C) Moral standards must be consistent
(D) Moral development must be ethical
Answer: (D) Moral development must be ethical
Q#3: Mujeeb and Imran are defendants charged by the government for insider trading. According to the prisoner’s dilemma scenario what will result in the worst outcome for Mujeeb?
(A) Mujeeb confesses and Imran does not
(B) Both Mujeeb and Imran confess
(C) Both Mujeeb and Imran stay silent
(D) Mujeeb doesn’t confess and Imran does
Answer: (C) Both Mujeeb and Imran stay silent
Q#4: Who is the supporter of Categorical Imperative?
(A) Kant
(B) Sidgwick
(C) Bentham
(D) Mill
Answer: (A) Kant
Q#5: If Sameer destroys Sajid’s property or injures him bodily, Sameer will be held morally responsible for paying him damages. This is an example of:
(A) Redistributive justice
(B) Compensatory justice
(C) Distributive justice
(D) Socialist justice
Answer: (B) Compensatory justice
Q#6: A female manager supervises 10 people and one of them is her friend. She catches her friend stealing from the company. Should she turn in her friend or stay silent? This is an example of:
(A) Demands of caring
(B) Demand of justice
(C) Conflict between caring and justice
(D) None of the given options
Answer: (C) Conflict between caring and justice
Q#7: Which one moral judgment approach will be used when someone’s actions and policies will substantially affect the welfare and freedom of specifiable individuals?
(A) Utility
(B) Rights
(C) Justice
(D) Caring
Answer: (B) Rights
Q#8: In which system slavery would be entirely legal?
(A) Free market system
(B) Command economy system
(C) Voluntary exchange system
(D) Pure free market system
Answer: (D) Pure free market system
Q#9: Who has defended free markets on the basis of utilitarian argument?
(A) Friedrich A. Hayek
(B) Alasdair MacIntyre
(C) Adam Smith
(D) John Locke
Answer: (A) Friedrich A. Hayek
Q#10: Which of the following is an economic system in which the means of production are privately owned and operated for a profit?
(A) Communism
(B) Capitalism
(C) Liberalism
(D) Socialism
Answer: (B) Capitalism
Q#11: Which economist has the harshest and most influential criticism of the inequalities that private property institutions and free markets create?
(A) John Maynard Keynes
(B) Karl Marx
(C) Adam Smith
(D) David Ricardo
Answer: (B) Karl Marx
Q#12: Which of the following is NOT a moral outcome of perfectly competitive markets?
(A) Exclusive dealing arrangement
(B) Retail price maintenance agreement
(C) Tying arrangement
(D) Manipulation of supply
Answer: (D) Manipulation of supply
Q#13: Chicken Delight is a chain of food stores whose major product is chicken. It sells franchise only if the buyer agrees to purchase cookers, fryers, and suppliers. This is an example of:
(A) Value statement
(B) Morality
(C) Ethical philosophy
(D) Code of ethics
Answer: (A) Value statement
Q#14: Which of the following is NOT a statement which presents the firm’s view on ethics?
(A) Value statement
(B) Morality
(C) Ethical philosophy
(D) Code of ethics
Answer: (B) Morality
Q#15: Which markets embody sense of justice?
(A) Utility
(B) Rights
(C) Justice
(D) Faith
Answer: (C) Justice
Q#16: Which of the following is NOT a moral outcome of perfectly competitive markets?
(A) None of the above
(B) Exclusive dealing arrangement
(C) Retail price maintenance agreement
(D) Tying arrangement
Answer: (A) None of the above
Q#17: Which of the following choices does NOT describe a situation covered by the concept of rights?
(A) The absence of prohibitions against an activity
(B) The authorization to do something to secure one’s interests
(C) The necessity of doing something required by authority
(D) The existence of prohibitions on others to enable individuals to pursue an activity
Answer: (C) The necessity of doing something required by authority
Q#18: Which theory claims that people would be lazy without private property?
(A) Capitalism
(B) Socialism
(C) Utilitarianism
(D) None of the above
Answer: (A) Capitalism
Q#19: According to Aristotle’s view, how do we learn virtue?
(A) By habit
(B) By dialectical argument
(C) By rational instruction
(D) By learning from our mistakes
Answer: (A) By habit