Which of the following is true about the market-based approach to environmental responsibility?
a. Market failure occurs when no markets exist to create a price for important social goods.
b. Free market exchanges can guarantee optimal results for addressing issues related to externalities.
c. The market-based approach always ensures that what is good and rational for a collection of individuals is also good and rational for a society.
d. Markets can be very successful if important ethical and policy questions and policy decisions are left solely to the outcome of individual decisions.
Answer: A
Business Ethics
- Which of the following is true of a service-based economy?
- Which of the following responsibilities entail an incentive to redesign products so that they can be recycled efficiently and easily?
- Which of the following holds that a business should be responsible for incorporating the end results ofits products back into the productive cycle?
- Which of the following would hold a business liable for groundwater contamination caused by its products even years after they had been buried in a landfill?
- Cradle-to-grave and cradle-to-cradle responsibilities are part of the _____ sustainable business principle.
- Which of the following holds that a business is responsible for the entire life of its products, including the ultimate disposal even after the sale?
- Which of the following suggests that a business takes resources, makes products out of them, and discards whatever is left over?
- "Closed-loop" production seeks to integrate what is presently waste, back into production. 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:
- Which of the following recommends cycling the waste of one activity into the resource of another?
- Estimates suggest that with present technologies, businesses can readily achieve at least a fourfold increase in efficiency, and perhaps as much as a tenfold increase. This can be achieved through the first principle of sustainability known as:
- Which of the following is true of the sustainability model in terms of environmental responsibilities?
- Which of the following is true of the sustainability model in terms of environmental responsibilities?
- Over the long term, resources and energy cannot be used, nor waste produced, at rates at which the biosphere cannot replace or absorb them without jeopardizing its ability to sustain life. These are what Herman Daly calls the:
- The model of economy, in consistency with the second law of thermodynamics, implies that:
- According to the _____ law of thermodynamics (the conservation of matter/energy), neither matter nor energy can truly be "created," it can only be transferred from one form to another.
- According to economist Herman Daly,neoclassical economics, with its emphasis on economic growth as the goal of economic policy will inevitably fail to meet these challenges:
- The possibility that the economy cannot grow indefinitely is simply not part of the:
- Which of the following is true of the circular flow model?
- Which of the following models does not differentiate natural resources from the other factors of production and does not explain the origin of resources?
- Which of the following is true of the Brundtland Commission?
- Which of the following was charged with developing recommendations for paths toward economic and social development that would not achieve short-term economic growth at the expense of long-term environmental and economic sustainability?
- The three goals of sustainable development that include economic, environmental, and ethical sustainability are referred to as the:
- Which of the following is true about the concept of sustainable development and sustainable business practice?
- Which of the following is a problem associated with the regulatory approach to environmental challenges?
- Which of the following is true about the regulatory approach to environmental challenges?