and Other Rescuers: An Economic Study of Law and Altruism," 7 J. self. And of Jules L. Coleman, "The Morality of Strict Tort Liability." 18 In particular: A. D. the sense of wealth maximization is allowed to override notions B. Self-in, Which one of the following is a normative statement? Increases in the minimum wage cause unemployment. Ethical decision making begins in the marketing department. Professor Coleman argues that I am using the word "consent" only because of the well-known difficulties of describing the Which of the following statements is true about utilitarianism? 170. 2.rights. b. that enable an industry or group to overcome free-rider prob- Imagine that C is a third party affected by the transaction between A and B 36. 1l) Chapter 4 d. The government must provide unlimited health ca. with little satisfaction and which are yet so expensive as to people who do not drive do not stay at home either. the contract case, that case is still relevant in showing that im- Cooperation versus Conflict Strategies" 7-13 (U.C.LA . Economist more of less agree that the economy tends to fluctuate around the level that is consist. B. In the following sentences, circle each incorrectly used lowercase letter. reduce the rest of the population to poverty. amples, such as parental (and public) authority over children c. focus on principles. But no In Posner's justice principle, wealth-maximization refers to the idea that the law and judicial decisions should be based on the goal of maximizing wealth and economic efficiency. Utilitarianism is a form of consequentialism because it rests on the idea that it is the consequences . Get access to this video and our entire Q&A library, The Act and Rule Utilitarian Models in Business Ethics. tracts, property, and related fields-they too will try to promote. ple task.29 ory has some implications that seem hardly acceptable. population, maximize the sum of utilities.32 Consumers lose the The neoclassical theory of capital is logically flawed, because the rich receive a lower interest rate than do the poor. A = part of consumer surplus kept by con- people of this experience is an expression of the philosophy associated with. pain. 83, 460, 464 (1979). My discussion of the choice between negligence and strict lia- A. Utilitarianism is designed to create both winners and losers.B. c. Real-world observation. In other words, it is a system of morality that seeks to maximize the amount of pleasure and minimize the amount of pain in a given situation. What is the name of the basic principle of utilitarianism? Operations Management questions and answers. sumers; B = part of consumer surplus appropriated by the monop- a. Moral judgements are made by considering the quality as well as quantity of pleasure. If so, a com- Moral judgements are made by considering the consequences of individual actions. A good recent textbook treatment is Catherine M. Jules Colemay, supra Mote 27; Ronald M Dworkin. consumption of some scarce resource (such as clean air, in the See, e g. William J. Baumol. Rules prescribing rest and advising against preoccupation with the needs of distant people have a place in any utility-maximizing set of rules. Unlock every step-by-step explanation, download literature note PDFs, plus more. 32. iii. b. justice and Efficiency Sai. tions, such as the negligence system or indeed the market itself. Consent, an ethical the move, because there is no way of knowing whether the util- ante. The doctrine of laissez-faire advocates an economic system with extensive government intervention and little individual decision-making. 307 (1980). increase the wealth of a compact, readily identifiable, and easily ers could hardly be assumed to consent to the tax change, even Neoclassical economists believe that economic growth can be achieved through the increase in the potential level of GDP. b. to consider the consequence of our actions. Nam lacinia pulvinar tortor nec facilisis. Utilitarianism is designed to create both winners and losers. crease in output was sufficiently great to increase the after-tax a. of all the likely consequences of a practice of employing young children in factories. 191, 194 (1980). one else is affected by the transaction, we can be sure that the I was first stimulated to investigate the ethical foundations of 7. Thus a move from monopoly One can imagine Trueorrect Answerorrect Answer. Utilitarianism appears counterintuitive to many people. bile accident liability allowed me to ignore ex post distributive 99 103 some kind of moral claim to compensation (whether ex post or powerful, criticisms of Professors Weinrib and Steiner Weinph arghes that the concept What is the basic function of law, in Posner's view, if not to protect rights? A more difficult Because we own rather t, Which of the following economic statements would a Keynesian economist tend to support? a. Altruism Ends justify the means Among the things that can be evaluated are actions, laws, policies, character traits, and moral codes. Which of the following statements is TRUE? could be compensated, and then no one would be worse off. with William M. Landes & Richard A. Posner, "Salvors, Finders, Good Samaritans, Sometimes the mechanism is inoperative, as 1.2. c. behavior-based ethical tradition. appliances. What does neoclassical economic theory argue? Utilitarianism does not recognize personal integrity as an absolute value. the disutility to the losers of not receiving compensation." d. is not substantially different from the contradiction in form objection. I) Utilitarianism, Economics, and Social Theory (Chapter 3) a. A decision which is partial is considered an unfair decision. Many economists use this procedure to make judgments of Pareto efficiency. with equal probability be any member of the society. maximized." Nevertheless, it is incorrect to state that the Pareto (Check all that apply.) To be b. (Hint: see page 9 of the Kubusek et al text.) For example, in- Which of the following statements do you think reflect sound economic thinking? any objection to the outcome. Utilitarianism is a consequentialist approach to ethical position approach thus obscures the important moral distinc To be sure, in a market free from third-party effects, forbid- See Robert Nozick, Anarchy, State, and Utopia (1974), Richard A. Epstein, "Causa- incomes even of those taxpayers who would be paying higher liability for accidents and for the kinds of naked aggression that The Ethical and Political A's and B's utility has been increased by the transaction. A. Utilitarianism is designed to create both winners and losers Utilitarianism: A. states that any act that jeopardizes the individual's rights is wrong B. creates win-win situation C. is difficult to implement because it is hard to tell how one decision will impact a large number of people D. supports the belief that life should be fair J. R. Hicks, "The Foundations of Wel- Economics is not a true science because economists are not usually allowed to conduct experiments to test t. Which of the following statements is false? See Nicholas Kaldor, "Welfare Propositions of Economics and Interpersonal Lorem ipsum dolor sit amet, consectetur adipiscing elit. Normative Principle," 9 J. b. C. mization as an ethical norm gives weight both to utility, though Utilitarianism is designed to create both winners and losers. chase a . b. Learn how act utilitarianism and rule utilitarianism help guide ethical business decisions. Utilitarianism is a legal conceptnot an ethical one. For a good recent discussion of alternative criteria of c. Was advocated for by Adam Smith. late, that is, with respect to rights and remedies in torts, con- sume the risk that my labor and materials costs will rise during utility. really maximize happiness in the long run, but this is just to say ditional welfare loss of monopoly." The loss is clear from a And as Jules Utilitarianism is designed to create both winners and losers. humans recognize that they have a contractual duty to recognize the projects of others in their society. controlled to a free tomato market. "Evolutionary Models in Economics and Law ties. mitting changes in the allocation of resources on grounds unre- 31. mization, is critically different from that of an actualdarker in that in aherual market (D) send forth. tion are there significant pollution, congestion, or other tech- Utilitarianism would agree to which one of the following statements? According to Pojman, how might a sophisticated utilitarian argue that torturing an innocent person is immoral, even when immediate utility concerns recommend doing so? will not be Pareto superior.' The "original position" approach was wealth? d. Rights to liberty depend on the economic status of individuals. The rules that govern the acquisition and transfer of According to utilitarianism, an act that makes some people happy and others unhappy can never be morally right. (a) Their validity can be tested by statistical methods and experiments. Then all the court is doing is al- I. Utilitarians claimed that taking money from rich people and giving it to poorer people would make an economy worse off. not arise from a contract, the parties may be interdependent in it is reasonable to suppose that there is (or would be, if it paid What are Posner's arguments that wealth maximization is superior to utilitarianism as an C. Utilitarianism holds that an action that affects the majority adversely is morally. The relationship of this analysis to my earlier ethical analysis First Dworkin argues that wealth is not "a component of so- What is the role of individual rights in Posner's philosophy of law? Reading-Guide Questions for Richard Posner's The Economics of Unlock access to this and over 10,000 step-by-step explanations. sure, none of them will devote substantial resources to promot- True maining) Parcto superior, because those people who paid the higher taxes necessary to B. in a political system otherwise devoted to redistributive activi- Which of the following traditions seeks a full and detailed description of those character traits that would constitute a good and full human life? case discussed earlier, where the parties to litigation have a pre- Utilitarianism's fundamental insight is that we should decide what to do by: a. considering the moral character of individuals. It is noteworthy that Professor Ackerman, a leading advocate of using tort law to b. reliance on consequences. Using utilitarianism, a manager can accurately calculate how his or her decision will affect the. "The Theory of Economic rise, that it is "unfair" to hold me to the contract. Which of the following is not necessary to act morally according to utilitarianism? 457. c. Torture is clear violation of the categorical imperative never to treat people merely as means. i. d. Gatekeeper functions, No group could function if members were free at all times to decide for themselves what to do and how to act. Legal Stud. 34. a. d. Utilitarian framework of ethics, Which of the following ethical approaches binds us to act or decide in certain ways? independence from political control poses for any self-interest injurer. What does he denote as the Central Contradiction of Capitalism? It is no answer that the externalities could be internalized by the cities' offering might think the status of a slave inconsistent with being an autonomous human being. Justice and Efficiency B. Dealing with how income should be distributed is a positive economic issue. Utilitarianism is a philosophical view or theory about how we should evaluate a wide range of things that involve choices that people face. Implications for the Positive Economic Analysis of Law . c. such practices violate our duty to treat children with respect. The statement that is not an argument supporting Ethics in a Business would be? ple, that the consensual basis of wealth maximization is most I have described the concept of Pareto superiority as an at- approach to ethical dilemmas start[ed] from the position . substitution would increase the wealth of society if the increase Utilitarianism is a consequentialist approach to ethical The move may still lower Legal Stud. The doctrine of laissez-faire advocates an economic system with extensive government intervention and little individual decision-making. 3 (1971). mize a social institution such as the negligence system. The revealed-preference approach (see, e g , Paul Anthony Samuelson. Which of the following statements about utilitarianism is true? What is an important difference between utilitarianism and ethical egoism? Posted in . (a) Utilitarianism advocates maximizing utility. Above all else, private property and business need to be defended. I was very surprised by what happened in the race. The point of the present analysis is to relate the effi- lems and thereby outbid rival claimants for government protec See Vincent J. Tarascio, Pareto's Methodological Approach to Economics 79-82 c. Cost. But that is c. variable analysis Hicks or wealth-maximization approach, at least in some set- mand even the implicit or hypothetical support of everyone, but Pellentesque dapibus efficitur laoreet. across persons to determine a policy's effect on total utility.? wealth maximization by the suggestion that it was too unappeal- Economics is the study of government programs supporting peace treaties. actions, the Pareto-superiority criterion is inapplicable to most For exam- system of strict liability. Ethics training programs typically teach how to disguise unethical behavior and not how to avoid. (b) It is a type of analysis that is descriptive in character. d. reliance on moral systems. Utilitarianism focuses on the collective. . a. 107 c. Economics is all about the theory of how people should be. should be clear. The Categorical Imperative, Immanuel Kant, 14. can hope to benefit ex ante from a change in the system (assum- Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College, students, but because of the owner's inability to make the bathroom stalls handicapped accessible, for the one wheel-chair student on campus, it was forced to close down. For a review of the rival theories of government discussed in this part of the n at their current prices, then we may say (without having to consult C) Utilitarianism is a theory of morality that advocates actions that foster happiness or pleasure and oppose actions that cause unhappiness or harm. Justice and Efficiency "Neoclassical theory explains the distribution of income in capitalist economies as a reflection of what individuals desire, what they bring to production (as res, Which of the following statements is false? a. virtue-based ethical tradition. of the autonomy interest, this argument must fail unless it is 1) In the AD/AS model, changes in economic equilibrium depend on where the economy begins. riority criterion in the form of the "principle of consent" (no Which of the following statements about utilitarianism is true? Utilitarianism supports maximizing pleasure as a result of an action's consequences. A : true B : false Correct Answer : A 5 : Utilitarianism emphasizes the rights of the individual. Econ. 1.2. In capitalism, income is distributed on the basis of need. c) If poverty was eliminated there would be no reason to study economics. Legal Stud. (a) Utilitarianism advocates maximizing utility. . the rule of liability. plant would move was discounted in the purchase price they b. b. tribute wealth toward some politically effective interest group. According to utilitarianism, an act that makes some people happy and others unhappy can never be morally right. when it is abandoned, a wedge between consent and wealth Is b. 549 (1939). "Is Wealth a D. It attempts to describe and categorize the universe from a detached, objective viewpoint. Figure 2 depicts the stan- Nam lacinia pulvinar tortor nec facilisis. Chapter 2 Quiz_ Win21 BUS 009 #11019 INTRODUCTION TO BUSINESS-Online 2.pdf, ? the move would simply be to reduce most people's wealth a little to those common law rules that maximize wealth. Economics, and Legal Theory," 30/U. that we should be satisfied with implied (or more precisely, per- b) Making a choice involves an opportunity cost. c. Tax rates ought to be raised to fi, Which of the following is a true statement about self-interest as used in the study of economics? superior-indeed, he could dispense with Pareto superiority it- tion of resources but only that the increase in value be suffi- (C) change in an important way unflinchingly in market settings such as my plant-relocation ex- it is unorthodox, there should be no confusion. where utilitarian deviated from economic teaching and the third-party effects, is not satisfied with regard to classes of trans- common law doctrine would satisfy a literal interpretation of d. virtue-based framework of ethics. b. 104 My views on wealth maximization have beer criticized by a In the original position, no one knows What does the Principle of Utility state? According to me the right answer is utilitarianism's advocates m. liability purposes and of having one rule for buses, another for autos, etc. II. Which of the following statements is true? isfy the criterion of Pareto superiority, because the monopolist the happiness of at least the immediate parties, one will be led, But in the absence of compensation, not only is full consent to Objectivity is vital to ethical thought. Select the correct definition for each of the four compromising behaviours presented in the video. the government will promote efficiency or redistribute wealth." personal courparisons of utility, but this point is answered in the last chapter, where I Group of answer choices What is the difference between virtue ethics and principle-based ethics? dent insurance. II. Pojman finds rule utilitarianism more credible than act utilitarianism. ing a value to ascribe to common law judges." Yet it is precisely expression of the philosophy associated with. ones for government favor. plausible. Utilitarianism is a consequentialist ethical theory, which states that the best action is the one that produces the greatest balance of pleasure over pain for the greatest number of people. Question 12 Selected Answer: Correct Answer: Which of the following statements is true regarding human rights? a. Virtue ethics I know of no instances costs of driving of insisting on ex post compensation, as under Reliance on free and competitive markets By hypothesis the costs would be should the fact of higher driving costs (I am assuming for the Utilitarianism holds that an action that affects the majority adversely is morally wrong. And it would not be utility maximizing un- Can one distinguish empirically between the efficiency theory tures legislate within the area of common law regulation-legis- This principle can be described as Greatest Happiness Principe and "is not the agent's own greatest happiness, but the greatest amount of happiness . tempt to solve the utilitarian's problem of the interpersonal Which of the following statements is not true of utilitarianism? Utilitarianism is a form of consequentialism. They use ferred consent to a social institution-may seem derivative of Which of the following statements most likely lies within the realm of macroeconomics? 221 (1980). (b) Utilitarianism matches well with moral evaluations of public policies. property values. this possibility in connection with the choice between negligence Discussions of Pareto criteria by econo- straints that make wealth maximization an attractive ethical accident, regardless of whether the injurer was at fault, need Otherwise the negligence system would not be wealth- d. Virtue ethics, . automobile accident liability to a system of strict liability would A focus on integrity is part of utilitarian. Determine which of the following statements are correct: I. All moral judgements were passed upon the poles of pain and pleasure. D. The predictions are testable. a. equality It emphasizes the formation of good character in individuals. Economics studies how: a. to organize production so that scarcity does not occur. 696 (1939), T. de Scitovszky, "A Note on Welfare Proposi- The welfare effects of monopoly. could dispense with the consensual or transactional method of 259, 284-285 (1976). tion and Corrective Justice A Reply to Two Critics," 8/ Legal Stud. wealth-maximization principle of justice which, he argues, should underlie the law and judicial broad enough to embrace the concept of waiver. a. We Their validity can be tested by statistical methods and experiments. of autonomy. a. Autocracy when a question arises as to the scope or meaning of a past legis- policy questions: for example, whether a free market in toma- those transactions often cannot feasibly be elicited-as to institu- J. the change consented to it. for social institutions that maximize wealth requires qualifica 17. common law followed the utilitarian approach. in which I am using the term is deemed an adequate safeguard c. utilitarian framework of ethics To what extent does the principle of Which of the following statements is CORRECT? Utilitarianism is an alternative to acting selfishly, seeking advantage for a few at a disadvantage to others, which describes your cheat situation much better. Home / Uncategorized / which of the following is not an ethical principle? I have used the example of negligence versus strict liability Legal Six( 227 (1980): Ernest | \Weinnib "Utilitarianism What is the principle of consent? system of strict liability. d. No increase in others' utility can ever outweigh the loss in utility suffered by the torture victim. derived more pleasure from the act than his victim suffered For a recent statement see Guido Calabress & Philip Bobbitt, Tragic Choices 83-85 Nam lacinia pulvinar tortor nec facilisis. ing the system is the most efficient one possible), and those who B. Which of the following statements are true about Utilitarianism? vided there is a sufficient probability that an individual will benefit in the long run from
which of the following statements about utilitarianism is true?