Chapter 09 Test Bank Version 1 Ethics

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 16) The triple bottom line approach involves measuring business success of sustainable businesses and sustainable economic development in terms of A) B) C) D) economic, legal, and environmental sustainability. economic, ethical, and environmental sustainability. economic, legal, and competitive sustainability. legal, competitive, and environmental sustainability. 17) Knowing what the future must be, creative businesses look backward to the present and determine what must be done to arrive at that future. This process is known as A) B) C) D) 18) Which of the following is true of the conservation movement? A) B) C) D) 19) backward integration. forecasting. forward integration. backcasting. It advocated that the natural world should not be used as a capital resource. It considered natural resources to be able to provide an inexhaustible supply of material. It recommended a restrained and prudent approach to the natural world. It argued against the natural world being used to provide indirect benefits. Identify a true statement about the conservation movement. A) B) C) D) It considered natural resources to be able to provide an inexhaustible supply of material. It argued that the natural world is available only for the exploitation of human beings. It argued that the natural world was valued as a resource, providing humans with both direct benefits and indirect benefits. It believed that the natural world does not have the productive capacity to produce long-term income. 20) Reminiscent of the ________ tradition, a view supporting animal rights suggests that some animals have the cognitive capacity to possess a conscious life of their own and people have a duty not to treat these animals as mere objects and means to their own ends. A) Kantian B) virtue ethic C) neoclassical D) social web 21) According to the market-based approach, environmental problems A) B) C) D) are caused by conservationists. are caused by the inexhaustible supply of resources. deserve economic solutions. need to be solved through corporate social responsibility. 22) Which of the following is involved in environmental problems according to the market-based approach to resolving environmental challenges? A) B) C) D) 23) Which of the following environmental legislations was enacted in the United States in the 1970s? A) B) C) D) 24) the Humane Slaughter Act the Wilderness Act the Federal Coal Mine Health and Safety Act the Federal Water Pollution Act William Baxter argued that A) B) C) D) 25) lack of knowledge of producing renewable resources inability of businesses to produce and sell limited resources limited use of appropriate substitutes for limited resources allocation and distribution of limited resources there is an optimal level of pollution that can be achieved through competitive markets. the natural world is still valued as a resource, providing humans with both direct benefits and indirect benefits. there is a legal solution for every economic problem. all resources can be replaced by substitutes. In economic terms, all resources A) B) C) D) are infinite because they can be replaced by substitutes. are distributed fairly by the government. can be made available everywhere. are distributed efÏciently in the market. 26) In economic terms, resources that are not being used to satisfy consumer demand A) B) C) D) 27) Market failure occurs when A) B) C) D) 28) are being conserved. are being wasted. can be used to preserve the environment. can be used for animal welfare. no markets exist to create a price for important social goods. manufacturers use substitutes for certain resources. businesses conform to regulatory requirements. no economic solutions are used to address environmental problems. Market failure can lead to serious environmental harm by A) B) C) D) creating a price for important social goods. making no distinction between individual decisions and group consequences. eliminating all kinds of externalities in the economic exchange system. internalizing external costs. 29) Which of the following is a reason for the inadequacy in ad hoc attempts—internalizing external costs and assigning property rights to unowned goods such as wild species—to repair market failures? A) B) C) D) 30) the backcasting problem the fungibility problem the biomimicry problem the first-generation problem Markets can work to prevent harm only through information supplied by the existence of market failures. This is better known as the A) B) C) D) biomimicry effect. backcasting problem. first-generation problem. primary market effect. 31) Which of the following legal avenues was primarily used for addressing environmental concerns before the environmental legislation was enacted in the 1970s? A) B) C) D) 32) tort law contract law commercial law criminal law Identify a true statement about the environmental legislation enacted in the 1970s. A) B) C) D) It overestimated the influence that businesses can have in establishing a law. It focused mainly on providing compensation after the occurrence of pollution or any other environmental harm. It shifted the burden from those threatened with harm to those who would cause the harm. It primarily addressed environmental concerns using tort law. 33) Established by the U.S. Energy Policy Conservation Act of 1975, ________ is the sales-weighted average fuel economy, expressed in miles per gallon (mpg), of a manufacturer’s fleet of passenger cars or light trucks. A) B) C) D) 34) Which of the following is a problem associated with the regulatory approach to environmental challenges? A) B) C) D) 35) The regulatory model assumes that economic growth is environmentally and ethically benign. If people rely on the law to protect the environment, environmental protection will extend beyond the law. Business passively responds to consumer desires, and consumers are unaffected by the messages that business conveys. National regulations are the only means to effectively address international environmental challenges. Which of the following is true about the concept of sustainable development and sustainable business practice? A) preceded it. B) C) D) 36) mean fuel economy (MFE) corporate average fuel economy (CAFE) adjusted average fuel economy (AAFE) graduated fuel efÏciency (GFE) It suggests a radically new vision for integrating financial and environmental goals, compared with the growth model that According to this concept, only individuals who can prove that they had been harmed by pollution can raise legal challenges. According to this concept, any harm to the environment can be adequately compensated. It focuses only on the costs that businesses incur in pursuing environmental goals. The three goals of sustainable development that include economic, environmental, and ethical sustainability are referred to as the A) B) C) D) tripartite goals. three pillars of sustainability. three-pronged charter. shoulders of sustainability. 37) Which of the following was charged with developing recommendations for paths toward economic and social development that would not achieve short-term economic growth at the expense of long-term environmental and economic sustainability? A) B) C) D) 38) the Bluewash Commission the Binding Commission the Barentsburg Commission the Brundtland Commission Which of the following is true of the Brundtland Commission? A) It was named after the place in Norway where the summit was conducted for the first time. B) It was charged with developing recommendations for paths toward economic and social development at the expense of underdeveloped and developing countries. C) It defined sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. D) It criticized the report from the United Nations’ World Commission on Environment and Development published in 1987 . 39) Which of the following models explains the nature of economic transactions in terms of a flow of resources from businesses to households and back again? A) the circular flow model B) the triple bottom line model C) the pyramidal flow model D) the neoclassical model 40) Which of the following is true of the circular flow model? A) B) C) D) 41) It differentiates natural resources from the other factors of production. It suggests that to keep up with the economy, the population must grow. It treats economic growth as both the solution to all social ills and also as boundless. It argues that the economy cannot grow indefinitely. The possibility that the economy cannot grow indefinitely is simply not part of the A) B) C) D) three pillars of sustainability approach. circular flow model. triple bottom line approach. bilinear model. 42) According to economist Herman Daly, neoclassical economics, with its emphasis on economic growth as the goal of economic policy, will inevitably fail to meet sustainability challenges A) B) C) D) if it suggests that the population of the world needs to be controlled. unless it recognizes that the economy is but a subsystem within earth’s biosphere. unless it recognizes that resources are infinite. if it focuses on recycling and reusing the by-products of the production process. 43) According to the ________ law of thermodynamics (the conservation of matter/energy), neither matter nor energy can truly be “created,” but can only be transferred from one form to another. A) B) C) D) first second third fourth 44) Over the long term, resources and energy cannot be used, nor waste produced, at rates at which the biosphere cannot replace or absorb them without jeopardizing its ability to sustain life. These are what Herman Daly calls the A) B) C) D) 45) Identify a true statement about the circular flow model. A) B) C) D) 46) “economic limitations.” “backcasting effect.” “biophysical limits to growth.” “un-expandable boundaries.” It differentiates natural sources from other factors of production. It does not explain the origin of resources. It does not treat economic growth as a solution to all social ills. It highlights the possibility that the economy cannot grow indefinitely. Identify a true statement about Herman Daly’s model of the economy as a subset of the biosphere. A) B) C) D) 47) It does not differentiate natural resources from other factors of production. It treats economic growth both as the solution to all social ills and also as boundless. It recognizes that wastes are produced at each stage of economic activity. It treats natural resources as an undifferentiated and unexplained factor of production emerging from households. One of the attributes of sustainability is that it A) B) C) D) reduces competitive advantage. cannot be used in the long term. is a good risk management strategy. can lead to huge expenses. 48) “Doing more with less” has been an environmental guideline for decades. This can be achieved through the first principle of sustainability known as A) B) C) D) 49) eco-diversity. eco-efÏciency. the cradle-to-cradle responsibility. the take-make-waste model. “Closed-loop” production seeks to A) B) C) D) integrate what is presently waste back into production. reduce waste rather than eliminating it totally. double the existing productivity from one-half the resource use. dispose waste with minimal damage to the environment. 50) In an ideal situation, the waste of one firm becomes the resource of another, and such synergies can create eco-industrial parks. This principle is often referred to as A) B) C) D) 51) biomimicry. eco-efÏciency. open-loop production. bioinspiration. Business takes resources, makes products out of them, and discards whatever is left over. This approach is known as A) B) C) D) cradle-to-grave approach. take-make-waste. open-loop production. closed-loop production. 52) Which of the following holds that a business is responsible for the entire life of its products, including the ultimate disposal even after the sale? A) B) C) D) the cradle-to-grave model the take-make-waste approach the cradle-to-cradle model the eco-efÏciency principle 53) Identify the sustainability model that would hold a business liable for groundwater contamination caused by its products even years after they had been buried in a landfill. A) B) C) D) 54) According to the cradle-to-cradle model, a business should A) B) C) D) 55) the bioinspiration model the open-loop production model the take-make-waste model the cradle-to-grave model take resources, make products out of them, and discard whatever is left over. incorporate the end results of its products back into the productive cycle. find effective ways to dispose waste with minimal damage to the environment. double its existing productivity from one-half the resource use. Which of the following is true of a service-based economy? A) A service-based economy tends to consumers’ demands for clothes cleaning, floor covering, illumination, entertainment, and so forth. B) A service-based economy interprets consumer demand as a demand for washing machines, carpets, lights, consumer electronics, and so forth. C) A service-based economy weakens the production efÏciencies. D) A service-based economy increases material and energy costs significantly. 56) Introduced at the Rio Earth Summit in 1992, the concept of ________ is a way business can contribute to sustainability by reducing resource usage in its production cycle. A) B) C) D) 57) An often-overlooked aspect of advertising is its A) B) C) D) 58) product. categorical imperative eco-efÏciency average fuel economy insider trading pricing function. planning function. educational function. legal function. ________ is the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the A) B) C) D) Greenwashing Redlining Biomimicry Backcasting 59) Labeling products with such terms as “environmentally friendly,” “natural,” “eco,” “energy efÏcient,” “biodegradable,” and the like can help promote products that have little or no environmental benefits. This practice is known as A) B) C) D) 60) greenskinning. redlining. gentrification. greenwashing. ________ refers to the growing marketing practice of taking back one’s products after their useful life. A) B) C) D) Rebranding Reverse channels Disintermediation Vertical channels 61) In the context of green marketing, ________ provides strong incentives for redesigning products in ways that make it easier to reuse and recycle. A) B) C) D) take-back legislation hypernorms due process categorical imperative