Which of the Following Statements About Social Responsibility Is True

question 110

Multiple Choice

Which of the following statements about social responsibility is true?

• A) Companies are viewed as having social responsibilities only in economic, legal, and ethical areas.
• B) The relative importance of economic, legal, ethical, and discretionary responsibilities is fixed and unchanging over time.
• C) Economic and legal responsibilities play a larger role in a company's social responsibility than do ethical and discretionary responsibilities.
• D) Companies will be considered unethical if they do not perform their discretionary responsibilities.
• E) Economic responsibilities are often referred to as fiscal responsibilities.

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Definitions:

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, usually measured by the consumer price index (CPI).

Countercyclical Intervention

Economic policies or actions taken to counteract the negative effects of economic downturns.

New Classical Economists

A group of economists who believe in the rational expectations theory, advocating that markets generally operate efficiently and that policy interventions often lead to unintended consequences.

Macroeconomic Theory

Macroeconomic theory involves the study and analysis of economy-wide phenomena, including inflation, national income, and unemployment.