Kenneth J Arrow | Social Responsibility and Economic Efficiency

question 40

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.
-Possible embodiments of social responsibility, according to Arrow, include

• A) legal regulations or liability.
• B) taxes.
• C) ethical codes.
• D) all of the above

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Definitions:

Quetiapine

A medication used to treat psychiatric conditions such as schizophrenia and bipolar disorder, operating as an antipsychotic.

Negative Effects

Unfavorable, harmful, or detrimental outcomes or impacts resulting from an action, condition, or circumstance.

Drug Companies

Businesses involved in the development, production, and marketing of medications and pharmaceutical products.

Selective Serotonin Reuptake Inhibitors

A class of drugs commonly used to treat depression and anxiety, known for increasing serotonin levels in the brain.