Question

True or False?

1. "Whistleblowing" can harm the business and the whistleblower, but has not been known to end the unethical behavior it exposes.

2. Primary goods are those goods that are necessary in order to achieve whatever other goods an individual chooses to pursue.

3. Some observers argue that insider trading is an efficient means to disseminate accurate information about the market and that it moves the markets in the direction of equilibrium. The challenge to this argument is, however, that this is accomplished by unfair and unethical means.

Answer 1

1. False.

• Whistleblowing is an act of exposing any unethical or unfair activities and the person who does so is called a whistle blower.
• Whistleblowing can expose and bring an end to the unethical behaviour while at the same it it can harm the business and the whistleblower himself.

2. True.

• Primary goods are those goods that are used in the production of the factors of production or resources and are not manufactured themselves.
• These goods are necessary in order to achieve whatever other goods an individual chooses to pursue.

3. True.

• This argument in the favour of insider trading is a market based argument.
• It argues that insider trading helps in the dissemination of accurate information about the market and helps the market in moving towards equilibrium.
• But it also points out that, this outcome cannot be achieved without unfair and unethical practices.