In the United States, there are numerous organizations, some sponsored by business and others that are independent of business, that monitor the behavior, the product quality, and the service provided by businesses. What role do these organizations have in the process of promoting ethical behavior?
What will be an ideal response?
These intermediaries help promote ethical behavior. They provide a monitoring function and thus help ensure product quality, etc. The public places trust in third-party monitors that have good reputations such as Moody's, Consumer Reports, etc. These organizations also help disseminate information about the businesses they are monitoring. Third-party monitors increase the efficiency of the marketplace.
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An efficient market is one in which
a. no rents are created. b. past prices can be used to predict the levels of future prices. c. the principals can fully monitor the actions of their agents. d. the price fully reflects all available information.
Discouraged workers and marginally attached workers are
A) counted as employed by the BLS but are not part of the labor force. B) counted as employed by the BLS and are part of the labor force. C) counted as unemployed by the BLS and are part of the labor force. D) not part of the labor force. E) counted as unemployed by the BLS but are not part of the labor force.
A country with high economic growth:
A. will definitely experience high economic development. B. will never experience high economic development. C. not necessarily will experience high economic development. D. may not experience economic development without attention paid to policy actions.
Which of the following is not part of Hernando de Soto's The Other Path?
A. Reducing taxes. B. Encouraging the "underground" economy. C. Enforcing laws to safeguard private income. D. Improving infrastructure.