A sweatshop is an example of an ethical mode of production.

Study for the POB Business Test. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Labeling a sweatshop as an ethical mode of production is incorrect because sweatshops are typically characterized by poor working conditions, low wages, and often exploitative labor practices. An ethical mode of production prioritizes fairness, workers' rights, and sustainable practices, ensuring that employees are treated with respect and dignity. Sweatshops fail to meet these standards, as they often disregard workers' wellbeing in favor of maximizing profit, leading to a significant ethical dilemma surrounding their practices. Thus, the assertion that a sweatshop is an ethical mode of production is false.

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