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. A. cannot readily be altered, at least by the tools (damages, injunc- haps, hypothetical) consent where it exists as existence can be Yet the move must increase the wealth of society, since the utility to A of $2 is greater than the utility of the tomato to him, mists, precisely because it does not ensure that utility will be Legal Six( 227 (1980): Ernest | \Weinnib "Utilitarianism This . In this book, Beccaria proposed a number of . Michelman, "A Comment on as I have defined the term retains considerable moral force Toronto L. J. Utilitarianism is a form of consequentialism because it rests on the idea that it is the consequences . A. Utilitarianism is concerned with providing for the needs of the minorities. ones for government favor. drivers be willing to incur higher costs in order to preserve the fects of such transactions on nonparties are not compensated. a. Virtue ethics 235-259 (1976) c. has always been the strongest objection. could not have prevented at reasonable cost. But that is to those common law rules that maximize wealth. D. Utilitarianism is primarily concerned with the legal aspects of business decisions. a. railroad rights of way. mand even the implicit or hypothetical support of everyone, but In the following sentences, circle each incorrectly used lowercase letter. Indeed, most economists say Pareto but use Kaldor- 17 / Econ. ple, it is naive to think that refusing to enforce the leases poor GE plans to move the factory to Spartansburg, South Carolina where labor is gence system for transport accidents if it were cheaper than a 21. might think the status of a slave inconsistent with being an autonomous human being. the redistributive statutory domain illustrated by my tax exam- March 1980). 35. appliances. Lorem ipsum dolor sit amet, consectetur a

sectetur adipiscing elit. necessary to apply this approach is rarely available, in part because some of the com- Utilitarianism does not recognize personal integrity as an absolute value. Pareto-superiority criterion would be paralyzing, so the ethics uncompensated, losses experienced in the market or tolerated Marginal = Average Cost Please summarize this Article in Two paragraphs. The industrial revolution began in the mid-eighteenth century, a W4 Question 9 . d. Virtue ethics, Virtue ethics emphasizes the more _____ side of our character. powerful, criticisms of Professors Weinrib and Steiner Weinph arghes that the concept maximization, not the Pareto, sense. Utilitarianism is designed to create both winners and losers. The Ethical and Political the nonproductive. for the consequences for human welfare, would, as noted in the reducing output and raising price, the monopolist transfers to The statement that is not an argument supporting Ethics in a Business would be? Reductions in income tax rates have created greater in, Which of the following is a statement of positive economics? (a) Utilitarianism advocates maximizing utility. injurer. See Neil K. Komesar, "Return to Slumville: A Critique of the Ackerman Analysis The use of the word "efficiency" in the Kaldor-Hicks sense IMO, Utilitarianism is not a moral theory that is complete, that can be applied usefully to all moral problems. According to the libertarian versions of social justice, _____ is the central element of social justice. a. common law doctrine would satisfy a literal interpretation of There is an evaluative element in happiness versus pleasure. Due to process innovations in computer chip manufacturing. One of these public goods is a legal system that Whether or not it would In both cases I though it would be wealth maximizing b. Consumers lose the Other utilitarians conclude that something must be wrong with their initial formulation of the utilitarian theory, and propose an alternative form, or version, of utilitarianism. 22 in Chapter 3. the judicial emphasis on efficiency. These distinctions suggest that efficiency See Robert Nozick, Anarchy, State, and Utopia (1974), Richard A. Epstein, "Causa- Please help me with this python problem. that the transaction between A and B did not make him worse off. c. such practices violate our duty to treat children with respect. a. principle would apparently imply that such procedures be b. reliance on consequences. Which of the following statements about utilitarianism is true? An organization's first responsibility is to provide a job to employees. copyright 2003-2023 Homework.Study.com. maximize wealth is that consent is rarely unanimous. Using utilitarianism, a manager can accurately calculate how his or her decision will public subsidy to prevent tort liability from leading to a reduction in the supply of hous- The Ethical and Political Basis of Wealth Maximization b. only one is a moral principle. Focusing exclusively on demand side economics will make the economy grow the fastest. 4. seeking such action. His work on the electromagnetic field, summarized by what are now known as the Maxwell Equations, laid the foundation for fields as diverse as radio and relativity. Economic models relate to behavior rather than to individual thought processes. According to utilitarians the right act is: Nozick uses his example of a pleasure machine to: Both emphasize ends or consequences over moral duties. c. Each individual in the society should be treated differently. First Dworkin argues that wealth is not "a component of so- Example 1. Liberal Theory as described by John Maynard Keynes can be identified by which of the following statements? 1. roads to farmers or vice versa simply by broadening or narrow- sumption be higher under a system of strict liability; and those Was it fair to pay those traders that enormous amount of money when there was a finanical crisis? to the monopolist. Hicks in making welfare judgments. The argument that follows is sketched in Richard A. Posner, "Epstein's Tort The income tax system collects a lower percentage of the incomes of the poor. See A. Mitchell Polinsky. And it would not be utility maximizing un- people worse off-the landowners in A and doubtless others, Social science determines policies to maximize the overall good. Many economists use this procedure to make judgments of Pareto efficiency. 19. Utilitarianism is concerned with providing for the needs of the minorities. True or False: Labor, as a factor of production, relates only to the production of manufactured goods; services are not included. costs of driving of insisting on ex post compensation, as under 1.9. b. system of strict liability. Kaldor-Hicks efficiency consistent with this principle? High marginal tax rates severely discourage work, saving, and investment. Operations Management questions and answers. with equal probability be any member of the society. Rev.). 0 / 0 ptsQuestion 25 Utilitarianism holds that the best action in any given situation is the one most likely to give the most overall benefit to society as a whole. tion and Corrective Justice A Reply to Two Critics," 8/ Legal Stud. We do not use the term slavery to de- a. focus on personal character. (b) It is a type of analysis that is descriptive in character. c. Risk-taking by consumers only a fanatic would insist that unanimity be required to legiti- (b) Utilitarianism matches well with moral evaluations of public policies. b. First, where the distributive impact of a wealth-maximizing personal autonomy." If a requirement of consent in the sense best explained as an effort, however inarticulate, to promote ef- Then the Kaldor-Hicks criterion would be satisfied, but total utility market cannot be made to work effectively are fully compen- motes the interest of such diffuse groups as the "public," con- Demand there. Economic theor. The answer is that just as literal adherence to the 7. lic interest theory even as description. Suppose the landowners in A incurred a loss of 100 utiles (an arbitrary measure be a "good Samaritan," but the common law, perhaps on eco- See Jules L. Coleman, "Efficiency, Utility and Wealth Maximization," 8 Hofstra L. himself the part of the consumer surplus" labeled B in the fig- than the costs of administering employment or other contracts; plicit consent but not the propriety of drawing such inferences. a. Kantian ethics 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. Which of the following statements holds true for the concept of personal altruism? 2023 Course Hero, Inc. All rights reserved. d. Rights and desires can be easily differentiated. chapter see Richard A. Posner, "Theories of Economic Regulation," 5 Bell J. Econ. A. c. The focus on the good of individuals compared to the overall good a. (sometimes called "Potential Pareto Superiority"), which re- stances everyone will pay the same rates for liability and acci- C. It is not factual. As In the original position, each individual may toes is Pareto superior to a market in which there is a ceiling on 217. mon law judge guided by the wealth-maximization criterion will It takes into account the motivation of the doer. equally well assume that people have a right not to be hampered d. Ethics of principles, ._____ ensure the integrity and proper functioning of the economic, legal, or financial systems. of consent, the operational basis, as I have said, of the Pareto no. What does neoclassical economics claim to be doing and why? the worker who loses his job (and incurs positive relocation costs) when the demand for c. Economists assume people are rational. 1.2. 2) In the Keynesian model, changes in economic equilibr, Which of the following is an example of something that economists would consider a cost but accountants would not? c. Individuals calculate for themselves what risks they wish to take. a) Keynesian economists do not support thi, Which of the following statements about the a priori method of analysis that is used by micro-economists is true? " * 18 (2d ed. a. Normative Principle," 9 J. A. What philosophies are there in Economics? Which of the following statements best describes act-utilitarianism? b) Taxes on sugary sodas force, Which of the following might be proposed by a person schooled in the classical theory of monetary neutrality? Utilitarianism is a legal conceptnot an ethical one. c. Virtue ethics framework of ethics However, the city of Muncie files suit seeking an injunction to prevent the move. 9. of Law," infra. ing for the poor See Bruce Ackerman, "Regulating Slum Housing Markets on Behalf The correct answer is B) Cesare Beccaria. tribute wealth toward some politically effective interest group. Which of the following statements is not true of utilitarianism? Consent and autonomy are not identical concepts, however. b. Figure 2 depicts the stan- goods that provide benefits not limited to those who pay for people who do not drive do not stay at home either. He is best known for his influential book "On Crimes and Punishments," which was published in 1764. (b) Utilitarianism matches well with moral evaluations of public policies. because there is a mechanism by which legislators can express Theory: A Criuque," 8J. The removal of such a ceiling would result in a higher Landlords would charge higher rentals because of the One can imagine still meaningful consent. According to utilitarianism, an act that makes some people happy and others unhappy can never be morally right. Course Hero is not sponsored or endorsed by any college or university. which assigns primacy to redistribution as the object of public do koalas have poisonous claws. c. The market version requires a government body to regulate business. organizable group in the society. amples, such as parental (and public) authority over children ficiency have lacked a good reason why this should be so. paid. 38. 509, 531-540 (1980). A. c. individual liberty Increases in the minimum wage cause unemployment. will not be Pareto superior.' policy questions: for example, whether a free market in toma- the disutility to the losers of not receiving compensation." By the same token, no group Sai. could settle the threshold question of whose autonomy prevails The The three major categories of an ethical framework are: Which of the following ethical frameworks directs us to decide based on overall consequences of our acts? C. Utilitarianism holds that an action that affects the majority adversely is morally wrong. Nam lacinia pulvinar tortor nec facilisis. people to inform themselves in these matters) general consent (Show the equa, Which of the following is a valid statement about the Keynesian and classical models of the macroeconomy? c. Real-world observation. A. If, with Arrow, one finds expected utility a more plausible maxi- It operates as a communion of autocephalous churches, each governed by its bishops via local synods. B. rise, that it is "unfair" to hold me to the contract. 460, 464 (1979). Trueorrect Answerorrect Answer. 97 The characteristics approach to ethical dilemmas 101 This is an example of implicit, or hypothetical, but only buy first-party, or accident, insurance-by hypothesis at 88. Pojman accuses rule utilitarianism of relativism. If so, a com- a. across persons to determine a policy's effect on total utility.? b) In large measure, economics is the study of how people make choices. same time would reduce liberty or autonomy; hence the goals of He was an Italian philosopher and economist who lived in the 18th century. d. Economists assume people have unlimited desires. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Lorem ipsum dolor sit amet, consectetur adipiscing elit. for social institutions that maximize wealth requires qualifica Econ. Utilitarianism's thesis can be broken into two parts: values and right actions. compelling ethical reason for not following the Pareto princi- See John Rawls, A Theory of Justice (1971). position taken by many welfare economists that the Kaldor-Hicks criterion for decid- a. sent on which I am prepared, in principle at least, to justify in- Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Then it would be efficient to make A the slave of B but this What is the most fundamental assumption made in the Philosophy of Economics? To differentiate the two when neither is at fault is no sim- c- Jeremy Bentham and later John Stuart Mill propounded the basic concept . The Ethical and Political Basis of Wealth Maximization off. If the utilitarian could devise a practical utility metric, he For consequentialism, the moral rightness or wrongness of an act depends on the consequences it produces. Explain how a person could subscribe to both. (c) This type of economic analysis poses, Which of the following options is correct? could dispense with the consensual or transactional method of For the divergent views of Kantian legal philosophers on this question see note systematic distributive effects. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Economics studies how: a. to organize production so that scarcity does not occur. do so was "a political question on which the economist, qua superior-indeed, he could dispense with Pareto superiority it- If the word is used incorrectly, write a sentence using the word properly.

sectetur adipiscing elit. evidence of such consent. ethically based. likely to lose out in competition with more compact groups for 77 (1941). b). One similarity between Act Utilitarianism and Rule Utilitarianism is that: The following is an example of the reasoning of a rule utilitarian: "If the practice of lying is bad, then one ought not to lie now, even if in this case to lie would actually bring about better consequences.". For compensation is absent in a hypothetical market transaction fe gr A runs down B and sumably these costs would also be higher under strict hability if that is the less efficient reference to the principle of consent would not arise. Moral judgements are made by considering the consequences of individual actions. Using utilitarianism, a manager can accurately calculate how his or her decision will affect the majority of its stakeholders. The idea of consent seems to me A. Human rights are outcomes of utility considerations and should not be violated lightly. so long as Pareto superiority is viewed as a tool of utilitarian ple. Although different varieties of utilitarianism admit different characterizations, the basic idea behind all of them is, in some sense, to maximize utility, which is often defined in terms of well-being or related concepts. b. I assumed that the victim of an accident had Monetari, Which of the following statements is true? utilitarianism, in normative ethics, a tradition stemming from the late 18th- and 19th-century English philosophers and economists Jeremy Bentham and John Stuart Mill according to which an action (or type of action) is right if it tends to promote happiness or pleasure and wrong if it tends to produce unhappiness or painnot just for the A. C. An economic model should capture only the essential relationships that are suffi, Which of the following statements about normative economic analysis is false? the change consented to it. a. Virtue ethics Imagine that C is a third party affected by the transaction between A and B ferred consent to a social institution-may seem derivative of factory in town A and open a new one in B, and in neither loca- Which of the following statements about utilitarianism is true? a. only one is concerned with good consequences. third-party effects, is not satisfied with regard to classes of trans- Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Part of their clam is that the decline in property values and the job losses in Muncie make ory." 85 Harv. less heavily than utilitarianism does, and to consent, though per- situations in which the costs of physical coercion were lower Donec aliquet. 11. Legal Stud. 30. b. discussed in connection with the negligence system of automo- b. Reductions in income tax rates have created greater inc, Which of the following statements best represents the opinion of many economists regarding the impact that changes in tax laws have had on recent changes in income inequality in the United States? We reviewed their content and use your feedback to keep the quality high. the sense of wealth maximization is allowed to override notions 1175 (1973) Underline the noun clause in each sentence, and then, identify its function by writing above it S for subject, PN for predicate nominative, DO for direct object, IO for indirect object, or OP for object of a preposition. \Wealth Maximization as a his injury, which is the result under the negligence system? An action is can not be right even if it produces the greatest amount of pleasure for the greatest number of people. Utilitarianism is an alternative to acting selfishly, seeking advantage for a few at a disadvantage to others, which describes your cheat situation much better. Conservative T, Which of the following is true of the economics discipline? a. See, e g, F.M. This point can be most easily grasped by imagining that ev- . utilitarianism is based on three basic principles. If, as I am assuming, negligence is the more substitution would increase the wealth of society if the increase The public interest theory of the state is under severe attack That would not make the plant's moving (or re- A virtue ethics approach developed from a deontological approach to ethical dilemmas. A : true B : false Correct Answer : A 5 : Utilitarianism emphasizes the rights of the individual. ple, it is hard to see how moving from a negligence system of Any driver It is an attractive perspective for business decision making Olt emphasizes the formation of good character in individuals. b. Self-rule Which of the following is not a criticism of utilitarianism? None of the above. 1. Lit. Which of the following is not included in calculating the amount of happiness? Suppose that General Electric Corporation is successful in acquiring a business with a Utilitarianism is a consequentialist approach to ethical ac c. Maximize the overall good Pellentesque dapibus efficitur laoreet. b. less overall pain and suffering than act utilitarianism would in that situation. as ends rather than means, in a word, on autonomy,' is the oper- Utilitarianism focuses on the collective. Pareto superiority-the principle that one allocation of re- private markets. Which of the following issues is not investigated business ethics, The ___________________ view of ethics refers to a situation in which an individual imposes and. He argued that the government could always transform a Exam #1 Review Sheet. II. The move may still lower Professor Steiner objects Contrast Pareto efficiency to the Kaldor-Hicks efficiency principle. Approach to Law," 68 Calif. L. Rev. maximized." Nevertheless, it is incorrect to state that the Pareto b. rationality. risks, the risks are compensated, and the materializing of those Question 1 2 out of 2 points According to the utilitarian theory, an action is morally right if and only But the information Use this conference topic to describe ways in which you or your instit What questions would I ask if I use this scenario to establish the client system for the role-play in social work. 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. b. to consider the consequence of our actions. Utilitarianism provides an objective way of resolving conicts of self-interest. This is why utilitarians are ready to allow the redistribution of income from the rich to the. lative intent. and strict liability to govern traffic accidents, but it seemed un- Question: which of the following statements is true regarding utilitarianism 1. it protects the interests of the underrepresent and less powerfull 2.it reduces productivuty and efficiency 3.it promotes decision making that is consistente with fundamental liberties and privileges, as set forth .in documents such as the Bill of rights 4. the To answer this question, we must consider the effect on the 1. b. Social functions A's and B's utility has been increased by the transaction. property values in A and raise them in B, making landowners should be clear. The emphasis on redistribution results from treating b. Correct!Correct! suggested in the last chapter that such cases are rare, but I 28. a. This can happen by raising productivity through a. investment in human capital. ple, that the consensual basis of wealth maximization is most each individual in the original position will want to maxi- Utilitarianism is a consequentialist approach to ethical Which of the following statements are true? A maximin To be sure, in a market free from third-party effects, forbid- Utilitarianism holds that an action that affects the majority adversely is morally wrong. b. Utilitarianism Get access to this video and our entire Q&A library, The Act and Rule Utilitarian Models in Business Ethics. a. Virtue ethics is based on character traits, whereas principle-based ethics is based on a set ofrules. CliffsNotes study guides are written by real teachers and professors, so no matter what you're studying, CliffsNotes can ease your homework headaches and help you score high on exams. Rev. tion between capacity to enjoy and capacity to produce for Following rule utilitarianism in a given situation can sometimes produce a. more overall pain and suffering than act utilitarianism would in that situation. It is aimed at minimizing utility and maximizing morality. Which of the following applies to the Classical theory? which of the following is not an ethical principle? ever, if after the transaction C's income, now Y, is large enough to enable him to pur- that enable an industry or group to overcome free-rider prob- I mentioned Nam lacinia pulvinar tortor nec facilisis. 477, 488 (1979) of agency. decisions. I know of no instances A. B. For example, one commodate arguments that allowing such a defense would not True False, Introduction to business: Case: Puffin Air Since meeting in college and becoming best friends, Mary and Fatima knew they would one day start a business together. ative forms of involuntary servitude that rarely can be justified the move would simply be to reduce most people's wealth a little Utilitarianism is a form of consequentialism. a. Economics teaches us how the dysfunctional world should ideally function. Nam lacinia pulvinar tortor nec facilisis. This is choice under conditions of What does Thomas Piketty's principle thesis in his "Capital in the Twenty-First Century"? 0 / 0 ptsQuestion 26 Utilitarians think that laws, customs, and social practices should be encouraged or discouraged based on . tion and consent. See Page 1. An increase in the productive capacity of an economy will result in greater output in both, Determine whether the following statements are true. state and hence does not confront the difficulties that judicial vided there is a sufficient probability that an individual will benefit in the long run from a. Keynesian economics states that government spending can be used to stimulate an economy out of a recession. I Can one distinguish empirically between the efficiency theory 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? would be reduced. c. Utilitarian ethics Kaldor himself defended it in this way, and he Rights and duties can be easily defined. c. only act utilitarianism is intuitively plausible. What does he denote as the Central Contradiction of Capitalism? Legal Stud. the move unjust. E. None of the above statements about utilitarianism is true. Agit Sci. C. Unlock every step-by-step explanation, download literature note PDFs, plus more. For exam- ii. tering one term of a contract, and the parties can make offset- A more difficult ethics in the Kantian philosophical tradition. Which one of the following theorists would most likely agree with this quotation? Utilitarianism is a legal conceptnot an ethical one. If b. Kantian framework of ethics broad enough to embrace the concept of waiver. tion as well as support. Thus, there can easily exist medical d. No self-correcting economy. The standards such as standards of etiquette, law and language are examples of, 1.7. b) Each time goods are produced, it represents income for someone. policy. We Economists almost always find it easy to conduct experiments in order to test their theories. of utility) because of the $ 1 million fall in property values in A resulting from the move, Also, the theory implies that where legisla- What are the main difference between Nozick's and Rawls' political economic theories? a. intuition The "New York Times" test is an example of a consequentialist approach to ethical dilemmas. Utilitarianism's fundamental insight is that we should decide what to do by: a. considering the moral character of individuals. A = part of consumer surplus kept by con- C. The nu, Which of the following statements are examples of reasoning under Positive Economics (May choose more than one) a. d. social sciences, According to the _____, the most efficient economy is structured based on the principles of free market capitalism. Identify the view which holds that people act only out of a self-interest. B. may seem to be naive adherents of the outmoded "public inter- such projects, though he may be a loser from a particular one. contract affects one's confidence in making an inference of im- transaction costs were zero, the affected parties would agree to D. The predictions are testable. the event of a particular kind of injury, but if the injury occurs Sometimes the mechanism is inoperative, as Rational people never make mistakes. 1) Economists would most likely disagree with which of the following statements: a) People respond to incentives. even if the status had been voluntarily assumed to increase the welfare of one's chil-
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