Kenneth J Arrow | Social Responsibility and Economic Efficiency

question 16

Multiple Choice

Kenneth J. Arrow | Social Responsibility and Economic Efficiency
Arrow first reveals the shortcomings in arguments against the social responsibility of firms, or in arguments for profit maximization, setting the stage for why firms should be held responsible to society. In particular, corporations should be held responsible for the harms they cause, such as pollution and traffic congestion, for which they do not pay any costs. Lastly, regulations for such social obligations should be embodied in institutional, legal, or ethical manner, so all firms will accept that their competitors will also be held liable for their fulfillment.
-According to Arrow, behavior that we would regard as highly ___________ in physician is judged less harshly when found among businessmen.

• A) reprehensible
• B) acceptable
• C) honorable
• D) indifferent

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Definitions:

Caloric Restriction

A dietary regimen that reduces calorie intake without causing malnutrition, often studied for its effects on longevity and health.

Malnutrition

A condition resulting from not consuming enough nutrients from food, leading to health problems like stunted growth, weakened immunity, and organ dysfunction.

Child's Diet

The nutritional regimen followed by children, critical for their growth, development, and health.

Malnutrition

A condition that results from eating a diet in which one or more nutrients are either not enough or are too much, causing health problems.