Which of the Following Statements Is Most Correct

question 3

Multiple Choice

Which of the following statements is most correct?

• A) Firms that try to maximize their stock values will tend to lay off employees to cut costs.
• B) Firms that try to maximize their stock values will raise the prices of their products, gouging customers and driving them away.
• C) Anti-pollution laws are unnecessary because firms will choose not to pollute because that is in their best interests.
• D) The government should allow monopolies to operate without regulation so that they may maximize their shareholders' wealth.
• E) Newly-privatized firms generally hire more employees.

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Definitions:

Correct Meaning

The accurate interpretation or significance of a word, phrase, sentence, or text.

Chemical Transmitter

Substances released by neurons to transmit signals across a synapse to another nerve cell, often referred to as neurotransmitters.

Bloodstream

The blood circulating through the body of a person or animal, carrying oxygen, nutrients, and waste products.

Target Organ

A specific organ or tissue upon which a hormone, drug, or other substance acts or exerts its effects.