Ethics in Economics

What, according to the passage, is the basis for ethics in economics?

• Personal choice

• Profit and efficiency

• Sympathy for others

• Corporate social responsibility

What is one of Adam Smith's key insights in The Wealth of Nations?

• Acting on empathy is counter-productive

• Selfish behavior leads to better outcomes

• Cost-benefit analysis justifies ethical decisions

• Empathy should only be directed towards others

What, according to Aristotle, is ethics about?

• Having the right character

• Achieving the best outcomes

• Following a list of commandments

• Balancing extremes

What is the main approach to defining ethics in economics based on?

• Character

• Consequences

• Actions

• Psychology

What does the author suggest is a common ground between different approaches to ethics?

• Agreement on where ethics applies

• The need for character development

• The importance of consequences

• The flaws of the free market

What does the author propose as a potential source for defining ethics in economics?

• Behavioral economists

• Neuroscientists

• Business leaders

• Economists themselves

What do human quirks make difficult according to the passage?

• Predicting ethical decisions

• Reacting to economic injustice

• Accepting moral laws

• Processing relevant facts

What does the data in the graph indicate about fair trade coffee profits?

• They consistently earned greater profits than regular coffee.

• They did not fluctuate.

• They increased between 2004 and 2006.

• They were equal to regular coffee profits by 2008.

During which period did the greatest difference in per-pound profits between fair trade coffee and regular coffee occur?

• 2000 to 2002

• 2002 to 2004

• 2004 to 2005

• 2006 to 2008

What idea in the passage is most directly supported by the data in the graph?

• Acting on empathy can be counterproductive

• Ethical economics is defined by character

• Ethical economics is still possible

• People fear losses more than they hope for gains