Business Ethics Chapter 9 Quiz Answers

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:

unless it recognizes that the economy is but a subsystem within earth's biosphere.

Which of the following is true of a service-based economy?

A service-based economy tends to consumers' demands for clothes cleaning, floor covering, illumination, entertainment, and so forth.

A market-based approach to resolving environmental challenges denies that environmental problems are economic problems that deserve economic solutions.

False

According to William Baxter, there is an optimal level of pollution that would best serve society's interests.

True

Which of the following is true of the conservation movement?

It recommended a restrained and prudent approach to the natural world.

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?

The first-generation problem

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:

biomimicry

Market failure can lead to serious environmental harm by:

making no distinction between individual decisions and group consequences.

"Closed-loop" production seeks to:

integrate what is presently waste back into production.

_____ refers to the growing marketing practice of taking back one's products after their useful life.

Reverse channels

According to the market-based approach, environmental problems:

deserve economic solutions.

Identify a true statement about the conservation movement.

It argued that the natural world was valued as a resource, providing humans with both direct benefits and indirect benefits.

Which of the following is true of the Brundtland Commission?

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.

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.

The cradle-to-grave model

The possibility that the economy cannot grow indefinitely is simply not part of the:

circular flow model.

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:

backcasting.

From an environmental standpoint, the regulatory model assumes that economic growth is environmentally and ethically benign.

True

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.

Kantian

According to the cradle-to-cradle model, a business should:

incorporate the end results of its products back into the productive cycle.

The circular flow model differentiates natural resources from the other factors of production.

False