Social Responsibility by a Business

question 6

Multiple Choice

Social responsibility by a business:

• A) Is a doctrine developed by economist Milton Friedman.
• B) Requires a business to examine how its decisions affect its stakeholders, not just its shareholders.
• C) Is not part of a discussion of business ethics.
• D) None of the above

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Definitions:

Deadweight Loss

The loss in total surplus that occurs whenever an action or a policy reduces the quantity transacted below the efficient market equilibrium quantity.

Tariff

A tax imposed by a government on goods and services imported from other countries, affecting trade.

Domestic Price

The price of goods or services within a country's borders, distinct from the price in international markets.

Tariffs

Taxes imposed by a government on goods and services imported from other countries.