(MGMT2010)[2022](s)final~yccheukaa^_92105.pdf downloaded by hmgao from http://petergao.net/ustpastpaper/down.php?course=MGMT2010&id=3 at 2024-03-12 03:19:02. Academic use within HKUST only.

Integrated Test
MGMT – 2010
Spring 2022
L1 & L2

This test consists of 15 multiple choice questions (30 points), 11 miscellaneous questions, such
as “fill-in-the-blank” or true-false questions (40 points), and 4 open-ended responses (30
points). You can return to questions at any time during the test and do not have to complete
them in order.

You will have two hours (+5 minutes) to complete the test and can choose to start any time
from 8:00 to 22:00 on Friday, May 6. If you start after 22:00, your timer will still run out at 5
minutes past midnight and you therefore will have less time.

The test is open materials. That is, you may refer to the readings, the slides, previous
assignments and quizzes, and the zoom recordings. You may also use Google if you find it useful
(perhaps to clarify concepts or terms or use translation if you are unsure of the meaning of a
word). The questions have not been used before and are unique to this course, so you do not
need to worry about accidentally finding answers.

You may not discuss the test with anyone until Saturday, May 7. At that time, you are free to
discuss and share anything related to the test with other students. Please remember that both
receiving and giving help during a test is a violation of the university’s academic integrity
policies and will result in an F for the entire course.

For multiple choice questions, make sure not to leave any of them blank. Save some time at the
end to check that you did not inadvertently miss one and guess randomly if need be. Also, make
sure to read questions closely in case you are asked to identify a statement that is NOT true.

Your score and the correct answers will be revealed next week. I (David) will grade all your
open-ended responses. Solutions to the short responses will also be posted at that time. In the
meantime, Canvas may display and update a score that will be very low. Ignore that score, as it
is incorrect. The score will likely update multiple times.

If you have any clarification questions during the exam, please email me right away
([email protected]) or message me on WhatsApp (+1 646 912 8602) or via text (+852 9542
8602). I will respond as quickly as possible. Please reach out early if you need help or encounter
technical issues.

Good luck!
(MGMT2010)[2022](s)final~yccheukaa^_92105.pdf downloaded by hmgao from http://petergao.net/ustpastpaper/down.php?course=MGMT2010&id=3 at 2024-03-12 03:19:02. Academic use within HKUST only.

Multiple Choice Questions [15 x 2 points]

1. According to Tariq Fancy, former head of sustainable investing at Blackrock, the problem
with sustainable investing is that:
a. It undermines support for tougher regulations, which he thinks are necessary
b. It lowers profits for investors, which harms everyday people who save for
retirement
c. It harms oil companies, which need the revenue to provide a vital resource
d. It makes investments in oil production cheaper and that increases carbon
emissions
2. Which of the following is NOT an example of a social science experiment?
a. The matrix task from the Dishonesty documentary
b. The die-roll task (the first game in our class)
c. The trolley problem
d. The choice between Option A and Option B that affected the outcome of two
students (the second game in our class)
3. Which ethical framework is primarily concerned with the outcome of actions?
a. Deontological ethics
b. Utilitarianism
c. Virtue ethics
d. Deliberative ethics
4. When you want to avoid getting deceived by others, it helps to…
a. Come prepared with information and direct questions
b. Lie to the other person first before they can lie to you
c. Make statements that are technically true, but misleading
d. Look like you are disorganized
5. An important difference between traditional ethics and behavioral ethics is:
a. Behavioral ethics assumes that you cannot learn anything from an ethics class
b. Traditional ethics assumes that you cannot learn anything from an ethics class
c. Which values they think an ethical person should hold
d. Behavioral ethics considers the possibility that people may not even be aware
that they are making a decision involving ethics
6. One person can take an action that benefits them but might harm someone else. Before
taking the action, they could choose to find out if it will harm the other person.
However, they decide not to look and go ahead and take the action. This is an example
of:
a. Groupthink
b. Moral wiggle room
c. Conflict of interest
d. Altruism
7. Which ethical framework do effective altruists most closely adhere to?
a. Consequentialist ethics
b. Deontological ethics
c. Virtue ethics
d. Behavioral ethics
(MGMT2010)[2022](s)final~yccheukaa^_92105.pdf downloaded by hmgao from http://petergao.net/ustpastpaper/down.php?course=MGMT2010&id=3 at 2024-03-12 03:19:02. Academic use within HKUST only.

8. A company pays its employees a bonus if they work at least 60 hours in a week. After an
audit, a manager notices that almost all her employees are exaggerating how many
hours they work in order to receive a larger performance bonus. What is most likely to
end this kind of unethical behavior?
a. Conduct a workshop on the problem with conflicts of interest
b. Tell the employees that almost all the employees are exaggerating the number
of hours they work
c. Offer a bonus for an objectively measurable outcome, instead of something that
is self-reported
d. Update the company’s ethics code
9. Which of the following is NOT part of the ICAC’s Ethics Plus Standard for evaluating the
ethics of a decision (2nd guest lecture)?
a. Employees have access to the relevant facts
b. Employees are aware of the law
c. Employees understand what their own values are
d. Employees can become victims of blind spots
10. According to Utilitarianism, is it more ethical to become a secondary school teacher or a
(much better paid) tax lawyer?
a. Secondary school teacher is more ethical
b. Tax lawyer is more ethical
c. We cannot use utilitarianism to think about the consequences of our career
choices
d. It depends and we cannot say that one or the other is more ethical
11. When evaluating a decision to donate to different causes, which of the following is NOT
a benefit of engaging in viewpoint diversification?
a. We can discover what it is that we value
b. We can consider what would benefit different stakeholders (such as people in
our community and people far away from us)
c. We are more likely to invest all our efforts in the one cause with the greatest
impact on the world
d. We end up carefully considering the ethical impact of our decisions
12. Algorithmic used for hiring decisions can end up engaging in gender discrimination,
because…
a. Programmers of algorithms are biased against some candidates
b. Algorithms are built on data that is itself the result of biased decisions
c. Organizations want biased algorithms to justify their hiring decisions
d. Algorithms are identifying real gender differences
13. When people are first given the option of implementing a free (or very cheap) policy to
reduce carbon emissions by a little, they…
a. Become less supportive of a costly policy that has a big effect
b. Become more supportive of a costly policy that has a big effect
c. Do not change their support for a costly policy that has a big effect
d. Do not believe that there is a costly policy that has a big effect
(MGMT2010)[2022](s)final~yccheukaa^_92105.pdf downloaded by hmgao from http://petergao.net/ustpastpaper/down.php?course=MGMT2010&id=3 at 2024-03-12 03:19:02. Academic use within HKUST only.

14. Which of the following policies has been found to have a big impact on an
environmental problem?
a. Policies promoting recycling of plastic bags
b. Redesigning utility bills to show the energy use of neighbors
c. A cap & trade market to reduce emissions
d. Earth Hour
15. When people are part of a dispute and have to determine what a fair outcome is, they…
a. Objectively evaluate the facts and come to an agreement
b. Interpret ambiguous (unclear) information in ways that benefit them
c. Are pessimistic and think the fair outcome is worse for them than what a neutral
person would decide
d. Objectively evaluate the facts, but still cannot come to an agreement

Fill-in-the-blank Questions [3 x 3 points]

1. People are likely to help one person in crisis even when they could be helping more
people at the same cost. This is known as the ___identifiable victim effect_______ (3
words).
2. The head of a school chooses a textbook to assign to all students in a mathematics class.
He reviews many available options and determines that the best book is the one his wife
had written. The students will have to buy the textbook and she receives a payment for
each textbook that gets sold. This is an example of a ____conflict of interest_____ (3
words).
3. People who identify with ___effective altruism______ spend time evaluating the impact
of their donations to charity to determine where they can do the most good (2 words).

Multiple Answers Questions [2 x 4 points + 3 points]

1. Which of the following statements are true? Select all that are true:
a. When daycare centers implemented a fine for parents who arrived late, more
parents arrived on time because they did not want to pay the fine. [no]
b. Two people negotiating over how much they need to be paid to kill a mouse are
more likely to reach an agreement and kill the mouse than one person acting
alone [yes]
c. When given the chance, most students in our class avoided learning how their
decisions would affect the earnings of another student. [no]

2. Which of the following statements is consistent with what you know about the
Identifiable Victim Effect?
a. People are more willing to save the life of one child in immediate danger than to
donate money to provide education to many children whose lives would be
much improved as a result. [yes]
(MGMT2010)[2022](s)final~yccheukaa^_92105.pdf downloaded by hmgao from http://petergao.net/ustpastpaper/down.php?course=MGMT2010&id=3 at 2024-03-12 03:19:02. Academic use within HKUST only.

b. The charities that people are most willing to donate to are usually also the ones
that are most effective at saving and improving people’s lives. [no]
c. People may be less willing to act to combat climate change because it is not clear
who will be harmed. [yes]
d. People have more favorable views of donors who give after making careful
calculations than of donors who do rely on their emotions when donating [no]
3. Companies seek to promote ethics training because… (select all that apply)
a. They don’t want to get fined for unethical behavior of their employees [yes]
b. They want to avoid bad press resulting from being involved in an ethics scandal
[yes]
c. The Prevention of Bribery Ordinance legally mandates that they do [no]
d. Companies are guided by utilitarianism and utilitarianism implies that ethics
training is important [no]

True-False Questions [4 x 3 points]

1. When group members estimate what percentage of the total work they have
contributed to a project, the total adds up to more than 100% [True]
2. People believe that some transactions are ethical when no money is involved, but
unethical when they are made in exchange for payment [True]
3. People believe that randomly assigning others to different policies as part of an
experiment is ethical, because it helps us learn which policy is more effective [False]
4. Algorithms cannot make biased decisions, because unlike humans, they do not suffer
from psychological biases. [False]

Matching Questions [1 x 8 points]

1. Match each of the following four scenarios to a concept from class that best matches
the scenario. Note that a concept may be used more than once or not at all.
a. Country X has caused a lot of pollution in the past but does not pollute much
today. In climate agreements, Country X insists that we do not dwell on the past
and instead focus only on reducing today’s emissions.
Motivated reasoning
b. An employee thinks she is a very ethical person and will do the right thing, no
matter what. Later, she discovers that a good friend of hers at work acted
unethically. She decides not to report it.
Prediction error
c. A student thinks he is very reliable, but sometimes he turns in parts of a group
project a little late because of things outside of his control, such as due dates for
assignments from other classes. He gets very annoyed with other students on his
group project when they send things late, because he believes they are
unreliable people.
Fundamental attribution error
d. A tax lawyer earning HKD 350 per hour is approached by a friend who wants her
to come volunteer at a homeless shelter after work. The tax lawyer decides not
(MGMT2010)[2022](s)final~yccheukaa^_92105.pdf downloaded by hmgao from http://petergao.net/ustpastpaper/down.php?course=MGMT2010&id=3 at 2024-03-12 03:19:02. Academic use within HKUST only.

to volunteer but instead works an extra three hours that night and donates HKD
1,000 to the shelter. The shelter prefers the money to her volunteer work.
Effective altruism

Options to choose from: Prediction error, conflict of interest, ESG investing, effective
altruism, identifiable victim effect, groupthink, motivated reasoning, fundamental
attribution error, moral wiggle room, learning from the absence of information.

Short Response [3 x 10 points]

Imagine that the Business School wants to identify the most promising first year Management
students and offer them additional support before they start their second year. The school
develops an algorithm based on the salaries of recent graduates and data they have on those
graduates (gender, grades in the first year, whether they declared a major in the first year, and
whether they received student loans). The school uses the algorithm and assigns a professor as
a mentor to the first-year students identified as most promising by the algorithm. After a few
years, they analyze the data and find that students who received a mentor have higher salaries
after they graduate. They consider the algorithm and the program a success.

[10 points] Explain why the Business School’s conclusion is NOT valid and we CANNOT conclude
that the algorithm works as intended. (One argument for why the conclusion is not valid is
sufficient.)

Option 1: The same students might have been successful, even without the mentor support.
Option 2: Anyone might become very successful with the additional mentor support.

[10 points] Now, imagine that the school hires you as a consultant and asks you to conduct an
audit of the algorithm. You discover that all the first-year students identified by the algorithm
are men. The school says that this must be because men are better students of Management.
But you also look at the student grades, and you don’t find a difference between male and
female students.

Identify a problem with the algorithm that could explain what is happening.

The algorithm is supposed to identify the most talented students, but it is looking at the highest
income after graduation. That’s a very different outcome. It could be that men are paid more
after they graduate, or that they enter careers that have higher starting salaries. Neither of
those are reflective of their skills.

Companies often bring in consultants to make recommendations for how they can improve
their business operations. These consultants frequently recommend that the company reduces
(MGMT2010)[2022](s)final~yccheukaa^_92105.pdf downloaded by hmgao from http://petergao.net/ustpastpaper/down.php?course=MGMT2010&id=3 at 2024-03-12 03:19:02. Academic use within HKUST only.

the number of employees (that is, that some workers get fired). Imagine that the
recommendation is made public and that this is often not new information for the company,
which knew already that they would have to fire workers.

[7 points] Why would they still pay the consultants to tell them and the public something they
already knew would have to be done?

They want to shift responsibility for the firing to another party, outsourcing the reputational
damage.

[3 points] And what is a similar situation that we have discussed in class? (Very short response
is sufficient.)

GlaxoSmithKline and Turing Pharmaceuticals.