Which of the Following Actions Would Be Permitted Under the Friedman

question 7

Multiple Choice

Which of the following actions would be permitted under the Friedman philosophy of business involvement in social issues?

• A)a corporate contribution to a shelter program for runaway teenagers
• B)a corporate contribution to a pro-choice organization
• C)a corporate contribution to Mother Teresa's worldwide organization
• D)a corporate contribution to a mass transit system that will serve the offices of the company throughout the city

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Definitions:

Comparative Advantage

An economic theory that describes how entities can gain and benefit from trade if they produce goods and services at a lower opportunity cost than their trade partners.

National Defense

Governmental and military activities aimed at protecting the country and its citizens from external threats and maintaining territorial integrity.

Infant Industries

New or emerging industries in their early stages that may be protected by the government through subsidies or tariffs to help them grow.

Self-Sufficiency

The ability of an individual or economy to provide for all their needs without external assistance.