Multiple Choice Quiz
1
Which ethical question is not relevant to the process of marketing a product?
A) What responsibility do producers have for the quality and safety of their products?
B) Who is responsible for harms caused by a product?
C) Is the customer's willingness to pay the only ethical constraint on fair pricing?
D) Can producers discriminate in favor of, or against, some consumers?
E) All of the above.
F) None of the above.
2
Identify the statement that fails to reinforce the idea that the purchases made by consumers may not be truly voluntary:
A) The more consumers need a product, the less free they are to choose.
B) The consumer may experience anxiety and stress, e.g., when purchasing an automobile.
C) Price-fixing and price-gouging may restrict the consumer's freedom.
D) There may be marketing practices aimed at vulnerable populations such as children or the elderly.
E) All of the above.
F) None of the above.
3
Select the statement that represents a situation where informed consent is not operative:
A) The complexity of a product has been fully explained to a consumer.
B) The customer is not clear about the calculation of the interest rate on a leased product transaction.
C) The extended warranty conditions on a product have been fully disclosed to a consumer.
D) Warning labels on a product have pointed out any potential hazards associated with operating it.
E) All of the above.
F) None of the above.
4
Choose the statement that does not challenge the assumptions commonly found in economic textbooks that customers are benefited, almost by definition, whenever their preferences are satisfied in the market:
A) Impulse buying cannot be justified by appeal to consumer interests.
B) The exchange is prima facie ethically legitimate because it assumes that the individuals involved in the transaction act as free, autonomous agents capable of pursuing their own ends.
C) The ever-increasing number of bankruptcies suggests that consumers cannot purchase happiness.
D) Empirical studies provide evidence that greater consumption can lead to unhappiness.
5
Select the question that is most likely never relevant to the examination of business' responsibility for its products:
A) What caused an event to happen?
B) Who is to blame for any harms caused, who is liable?
C) What was the agent's motive?
D) Who was responsible for "caring for" a situation, accountable without any suggestion of culpability, fault, or blame?
6
The strict products liability standard requires a manufacturer to compensate injured consumers:
A) Only if it can be shown that the manufacturer was at fault in causing or failing to prevent a harm.
B) Even if the manufacturer was not at fault, even if there was nothing the manufacturer could have done to prevent the harm.
C) Only if the manufacturer used fraud or coercion at the time the contract for the product was agreed to by the consumer.
D) Only if the product's features were described in a deceptive manner in advertising copy.