Business Ethics
1. Shaw and Barry distinguish two different forms of utilitarianism. What are these two forms? Briefly describe each and use examples.
Two forms of utilitarianism are act utilitarianism and rule utilitarianism. Act utilitarianism focuses on the consequences of individual actions and how those involved will be affected. The right course of action to take is the action that will produce the most overall happiness. An example of act utilitarianism would be whether or not to tell a patient they have a serious, life-threatening illness. Telling them would cause much unhappiness; therefore lying would be the right decision. While act utilitarianism concentrates on individual actions to maximize happiness, rule utilitarianism states that moral codes should be used. A set of moral codes would better distinguish what is right and what is wrong. The moral rules are used to produce overall happiness for society. This form of utilitarianism explains that we should utilize the optimal moral code to maximize happiness. The same example above can be applied to rule utilitarianism. The doctor would need to consider moral rules. As a doctor, what is morally right? In this case, telling the truth would be the right decision.
2. What do economists mean by the “declining marginal utility of money”?
The declining marginal utility of money means that as a person buys more with their income, the more dissatisfied they will be. If someone has more money, they will buy more things that give them less pleasure. For example, if someone is on a tight budget, they will only be able to buy the things that they really want and need. If their budget expands, they will spend their money on excessive items that will give them less pleasure.
3. Robert Nozick presents his entitlement theory as a function of three basic principles. What are these three basic principles?
Robert Nozick’s entitlement theory explains that people are entitled to their belongings only if they obtained
Two forms of utilitarianism are act utilitarianism and rule utilitarianism. Act utilitarianism focuses on the consequences of individual actions and how those involved will be affected. The right course of action to take is the action that will produce the most overall happiness. An example of act utilitarianism would be whether or not to tell a patient they have a serious, life-threatening illness. Telling them would cause much unhappiness; therefore lying would be the right decision. While act utilitarianism concentrates on individual actions to maximize happiness, rule utilitarianism states that moral codes should be used. A set of moral codes would better distinguish what is right and what is wrong. The moral rules are used to produce overall happiness for society. This form of utilitarianism explains that we should utilize the optimal moral code to maximize happiness. The same example above can be applied to rule utilitarianism. The doctor would need to consider moral rules. As a doctor, what is morally right? In this case, telling the truth would be the right decision.
2. What do economists mean by the “declining marginal utility of money”?
The declining marginal utility of money means that as a person buys more with their income, the more dissatisfied they will be. If someone has more money, they will buy more things that give them less pleasure. For example, if someone is on a tight budget, they will only be able to buy the things that they really want and need. If their budget expands, they will spend their money on excessive items that will give them less pleasure.
3. Robert Nozick presents his entitlement theory as a function of three basic principles. What are these three basic principles?
Robert Nozick’s entitlement theory explains that people are entitled to their belongings only if they obtained