An Increase in the Demand for a Firm's Output

question 4

Multiple Choice

An increase in the demand for a firm's output

• A) decreases the prosperity of the firm but increases the prosperity of the factors hired by the firm.
• B) decreases the prosperity of both the firm and the factors hired by the firm.
• C) increases the prosperity of both the firm and the factors hired by the firm.
• D) increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm.

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Definitions:

Social Responsibility

The obligation of individuals, organizations, and businesses to act for the benefit of society at large, often emphasizing sustainability and ethical practices.

Philanthropic

Relating to the act of giving money, goods, time, or effort to support a charitable cause, often with no financial benefit to the giver.

Financial Donation

A gift or contribution of money made to a charitable organization or cause.

Earned Income

Income generated from business activities or services provided, distinguishing it from investment or donated income.