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California State East Bay Name:
________________________

Summer 2016

Business and Professional Ethics- MGMT 3560

Assignment Date: 7 July, 2016

Due Date: Thursday 14 July, 2016

Homework
#2

Instructions:
This is a true/false, multiple choice, fill-in-the-blank exercise. Thus, please use a Scantron, card and make
certain to write your name and HW#2 on the Scantron card.

1. Income inequality is unique to capitalist societies.

a.
True b.False

2. Which ethical and economic theorist is associated with the term “The
Invisible Hand”?

a.
Adam Smith c. Karl Marx

b.
John Rawls d. John Stuart Mills

3. Which ethical and economic theorist formulated capitalism as an
economic system superior to government-controlled mercantilism?

a.
Adam Smith c. Karl Marx

b.
John Rawls d. John Locke

e. Tod I. Zuckerman

4. Which pre-capitalist economic system sanctioned monopolies, put
quotas on exports, and strenuously regulatedtradesmen?

a.
Communism c. Mercantilism

b.
Socialism d. Feudalism

5. Adam Smith’s defense of capitalismrests on the following belief(s):

a. Freedom and liberty are essential values.

b. Free people naturally pursue their own self-interests and, thus,
do not respect the interests of other.

c. People will choose to enter product and labor markets where there
is the greatest need and opportunity

d. A strict system of justice is necessary to (a) punish those who
do not correctly self-regulate their behaviors, and (b) enforce contracts.

e.A, c, and d.

6. Over the last 200 years, what has industrialized society not
achieved?

a. Doubled life expectancy.

b. Eliminated famine.

c. Developed an extremely long list of technological innovations
that enhance the quality of life.

d. Ended hunger

7. Income inequality is unique to capitalist countries.

a. True b. False

8. The Federal Sentencing Guidelines were issued to require
managers to implement policies and procedures to reinforce ethical behaviors.

a. True b. False

9. An organization’s _____________________ describes what an
organization does and for whom.

a. Vision Statement

b. Code of Ethics

c. Code of Conduct

d. Modus operandi

e. None of the above

10. If a gratuity does not reach the level of a bribe, it cannot cause
problems for an organization.

a. True b. False

11. A provision in an organization’s Code of Conduct should clearly
state an employee’s privacy rights- clearly protected under the U.S.
Constitution- supersedes the employer’s right to monitor his/her email
communications on company-owned computers and network systems.

a. True b. False

12. Under John Rawls’ ethical principles, which statement is false?

a. First and foremost (the most important ethical principle) is that
every individual has an equal right to basic freedoms and liberties, such as freedom
of speech, freedom of/from religion, freedom to vote, etc.

b. A person has an absolute (unlimited right to private
property).

c. Any office/position should be open to any person regardless of
his/her social background, ethnicity, religion or sex- that is, an individual
should not only have the right to opportunities, but should have the same effective
equal chance as anybody else of similar natural ability.

d. Inequalities are permitted, but only to the extent they work to
the advantage of the worst-off (the most disadvantaged).

e. None of the above.

13. A crucial part of Rawls’ rationale/basis for his ethical principles
is that his principles would be chosen by parties in the_______ position. That
is, individuals behind a _______________ (meaning they would have no
information about themselves, so they could not tailor/select principles to
their own advantage) would choose principles that are fair to all.

a.
Original, iron curtain

b.
Initial, veil of innocence

c.
Informed, veil of ignorance

d.
Original, veil of ignorance

e.
None of the above

14. The phrase “the greatest good for the greatest number” is the
essence of _____________.

a.
Utilitarianism

b.
Communism

c.
Socialism

d.
Capitalism

e.
None of the above

15. The Gallup Poll regularly conducts surveys on public perceptions of
honesty and ethical standards for a wide range of professions and industries.
At the very top (the most admired) for very high ethical standard are
_______________.

a.
Politicians

b.
Attorneys

c.
Car Salespeople

d.
Advertising Professionals

e.
None of the above

16. Typically, (usually, not
always), private businesses can legally use polygraphs (aka “lie detectors”) as
a job screen.

f.
True

g.
False

17. According to Collins, of the
hundreds of possible personality measures, conscientiousnessis
the best predictor of both ethics and job performance.

18. It is illegal to perform an informal background check via Google.

a.
True

b.
False

19. The best predictor of future performance is past performance.

20. Which of the following verbal/bodily reactions is a 100% indicator
for lying?

a.
A long pause before
answering b. Avoiding eye contact c.
Shaking of a foot d. Rubbing of hands e.None
of the above

21. Under federal law, subject to a few exceptions, most organizations
can use polygraph testing as a pre-employment tool.

a.
True

b.
False

22. References are legally protected from a defamation lawsuit if the
information being conveyed is truthful.

a.
True

b.
False

23. According to surveys, about ______ of human resource managers
perform due diligence by inserting a jo candidate’s name in an Internet search
engine.

a.
10%

b.
25%

c.
50%

d.
75%

e.
90%

24. The ­Federal Sentencing Guidelines are mandatory – that is, a
federal district court judge must follow them – he/she has no discretion to
ignore/reject them.

a.
True

b.
False

25. The federal minimum wage is indexed to inflation – that is, it
automatically increases if inflation raises the poverty threshold.

a.
True

b.
False

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