Can Economics be Ethical?

The main purpose of the passage is to

• A) consider an ethical dilemma posed by cost-benefit analysis.
• B) describe a psychology study of ethical economic behavior.
• C) argue that the free market prohibits ethical economics.
• D) examine ways of evaluating the ethics of economics.

In the passage, the author anticipates which of the following objections to criticizing the ethics of free markets?

• A) Smith’s association of free markets with ethical behavior still applies today.
• B) Free markets are the best way to generate high profits, so ethics are a secondary consideration.
• C) Free markets are ethical because they are made possible by devalued currency.
• D) Free markets are ethical because they enable individuals to make choices.

Which choice provides the best evidence for the answer to the previous question?

• A) Lines 4-5 (“Some... ethical”)
• B) Lines 7-10 (“But... about”)
• C) Lines 21-22 (“Smith... outcome”)
• D) Lines 52-54 (“When... way”)

As used in line 6, “embraced” most nearly means

• A) lovingly held.
• B) readily adopted.
• C) eagerly hugged.
• D) reluctantly used.

The main purpose of the fifth paragraph (lines 45-56)is to

• A) develop a counterargument to the claim thatgreed is good.
• B) provide support for the idea that ethics is about character.
• C) describe a third approach to defining ethical economics.
• D) illustrate that one’s actions are a result of one’s character.

16 As used in line 58, “clashes” most nearly means

• A) conflicts.
• B) mismatches
• C) collisions.
• D) brawls.

Which choice best supports the author’s claim that there is common ground shared by the different approaches to ethics described in the passage?

• A) Lines 11-12 (“There... decision”)
• B) Lines 47-50 (“From... advertisements”)
• C) Lines 59-64 (“Take... market”)
• D) Lines 75-77 (“We... facts”)

The main idea of the final paragraph is that

• A) human quirks make it difficult to predictpeople’s ethical decisions accurately
• B) people universally react with disgust when facedwith economic injustice.
• C) understanding human psychology may help todefine ethics in economics.
• D) economists themselves will be responsible for reforming the free market.

Data in the graph about per-pound coffee profits in Tanzania most strongly support which of the following statements?

• A) Fair trade coffee consistently earned greaterprofits than regular coffee earned.
• B) The profits earned from regular coffee did not fluctuate.
• C) Fair trade coffee profits increased between 2004and 2006.
• D) Fair trade and regular coffee were earning equalprofits by 2008.

Data in the graph indicate that the greatest difference between per-pound profits from fair trade coffee and those from regular coffee occurred during which period?

• A) 2000 to 2002
• B) 2002 to 2004
• C) 2004 to 2005
• D) 2006 to 2008