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Question 1. 1. Company A pollutes 50% of what is allowed, while Company B pollutes 125% of what it is allowed. Company B purchases from Company A some of its “right” to pollute. This would be an example of: (Points : 1) cap and ball. cap and gown. cap and distribute. cap and trade.

Question 2. 2. Which of these might be considered a social cost of a company that pollutes excessively? (Points : 1) Stockholder value inevitably goes up Increased rates of disease Increased rates of debt Decreases tax base

Question 3. 3. In order to attract more socially responsible investors, a petroleum company could develop which of these policies? (Points : 1) Fund research and development in green technology Increase corporate funding for the gaming industry Monopolize seed patents in Central America Withdraw support for solar and wind power subsidiaries

Question 4. 4. A supporter of free markets might suggest that the most efficient strategy to minimize pollution is: (Points : 1) class warfare. central government planning. market socialism. property rights and market mechanisms.

Question 5. 5. Linda owns stock in Company X, which she discovers uses a lot of child labor. She sells that stock and with it buys stock in Company Y, which refuses to use child labor. This could be considered an example of: (Points : 1) SUV. SEC. SRI. SAP.

Question 6. 6. Fred discovers that the pharmaceutical company he works for is selling tainted drugs overseas, and reports it to the FDA. For doing this, Fred could be considered a: (Points : 1) socially responsible investor. market socialist. whistleblower. saboteur.

Question 7. 7. Those who advocate increased use of nuclear energy point to which of these as an advantage? (Points : 1) Bankruptcy of solar energy companies Cleaner, with fewer carbon emissions Inexpensive insurance rates Radioactive waste easily disposed of

Question 8. 8. A socially responsible investor might consider the following as an ethical reason not to invest in Company A? (Points : 1) Company A encourages a living wage for its workers. Company A has a negative price-earnings ratio. Company A builds affordable housing. Company A sells weapons to oppressive regimes.

Question 9. 9. During an economic recession, Gail plays the lottery and wins a million dollars. Rather than investing or spending this money, she decides to save it all. An economist who would insist that Gail would be acting in a way that would be more helpful economically by spending this money would be: (Points : 1) Adam N. Smith. George R. Stigler. John M. Keynes. David A. Ricardo.

Question 10. 10. Classical, free-market economists, consider hoarding a/an: (Points : 1) Demand of socially responsible investing. Personal decision on the part of an investor. Part of a well-balanced hedge fund. Excellent way to avoid confiscatory taxes.

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