According to the Text, Which of the Following Company Actions

question 58

Multiple Choice

According to the text, which of the following company actions would be legal, satisfy Friedman's advice, and also be unethical?

• A) moving earned income into a tax-free foreign territory such as the Cayman Islands
• B) polluting a local river with runoff because it knows the EPA will not detect the emissions
• C) engaging in monopolistic practices by colluding with other dominant companies in an industry to fix prices
• D) firing employees that indicate they might act as whistleblowers about improper acts

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Definitions:

Producer Surplus

The disparity between the amount producers are prepared to take for a product or service and the amount they actually get.

Tariff Revenue

The income generated for a government from taxing imported goods.

Consumer Surplus

The gap between what consumers are prepared and capable of spending on a product or service versus what they actually spend.

Trade Restrictions

Measures such as tariffs, quotas, and import bans implemented by governments to control the amount and type of goods and services that can enter or leave a country.